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Category: Economy

  • MIL-OSI United Kingdom: British Ambassador discusses economic growth, trade opportunities and investment climate with Minister of Economy

    Source: United Kingdom – Executive Government & Departments

    World news story

    British Ambassador discusses economic growth, trade opportunities and investment climate with Minister of Economy

    • English
    • Español de América Latina

    The British Ambassador to Guatemala, Juliana Correa, paid a courtesy visit to the Minister of Economy, Gabriela Garcia-Quinn on 5 March.

    The Ambassador and the Minister reviewed key areas of bilateral and international economic collaboration between the UK and Guatemala noting their shared values and interests, and their desire for increased cooperation. 

    Ambassador Correa welcomed Guatemalan efforts to enhance economic security, strengthen the resilience of critical supply chains and to coordinate efforts to address future challenges and build prosperity. 

    Amongst these, the UK commends the advancements made on the Competition Law, the openness to foreign investment, improved steps in the fight against corruption and continued collaboration to increase the UK-Guatemala trade figures through the UK-Central America Association Agreement. 

    According to Guatemala’s trade figures, bilateral trade in 2024 was US$155.7 million, an increase of 4.8% compared to the previous year. Exports of Guatemalan products were US$102.4 million, a decrease of -0.8%; while imports of British products were US$53.3 million, an increase of 17.6%.

    Finally, Ambassador Correa agreed to continue building up on economic opportunities detected by UK companies, share experiences that would benefit the business environment and work together to uphold and promote the rules-based international economic system, including free and open trade.

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    Updates to this page

    Published 5 March 2025

    MIL OSI United Kingdom –

    March 6, 2025
  • MIL-OSI Canada: More tax relief on the way for Jasper

    Source: Government of Canada regional news (2)

    MIL OSI Canada News –

    March 6, 2025
  • MIL-OSI: OTC Markets Group Announces Fourth Quarter and Full Year 2024 Earnings Conference Call and Webcast

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, March 05, 2025 (GLOBE NEWSWIRE) — OTC Markets Group Inc. (OTCQX: OTCM) today announced it will report its financial results for the fourth quarter and fiscal year ended December 31, 2024, after the close of the U.S. capital markets on Wednesday, March 12, 2025.

    In addition, OTC Markets Group will host a conference call and webcast on Thursday, March 13, 2025, at 8:30 a.m. eastern time, during which management will discuss the financial results in further detail.

    Webcast:
    The conference webcast and management presentation can be accessed at the following link (the replay will be available until March 12, 2026):
    https://edge.media-server.com/mmc/p/n6hcdcqb

    Live Call:
    Participants intending to ask a question during the live call and Q&A session should also register in advance at:
    https://register.vevent.com/register/BI27b59e5597d341e1a1a461fb3784f94d

    Upon registration, participants will receive a dial-in number along with a unique PIN number that can be used to access the live call. Live call participants may also select a “Call Me” option.

    The Annual Report, earnings release, transcript of the earnings call, and management presentation will also be available in the Investor Relations section of the OTC Markets Group website at www.otcmarkets.com/investor-relations/overview.

    About OTC Markets Group Inc.

    OTC Markets Group Inc. (OTCQX: OTCM) operates regulated markets for trading 12,000 U.S. and international securities. Our data-driven disclosure standards form the foundation of our three public markets: OTCQX® Best Market, OTCQB® Venture Market, and Pink® Open Market.

    Our OTC Link® Alternative Trading Systems (ATSs) provide critical market infrastructure that broker-dealers rely on to facilitate trading. Our innovative model offers companies more efficient access to the U.S. financial markets.

    OTC Link ATS, OTC Link ECN, OTC Link NQB, and MOON ATS™ are each an SEC regulated ATS, operated by OTC Link LLC, a FINRA and SEC registered broker-dealer, member SIPC.

    To learn more about how we create better informed and more efficient markets, visit www.otcmarkets.com.

    Investor Contact:

    Antonia Georgieva
    Chief Financial Officer
    Phone: (212) 220-2215
    Email: ir@otcmarkets.com

    Media Contact:

    OTC Markets Group Inc.
    Phone: (212) 896-4428
    Email: media@otcmarkets.com

    The MIL Network –

    March 6, 2025
  • MIL-OSI: Amplify Energy Announces Fourth Quarter and Full-Year 2024 Results, Year-End 2024 Proved Reserves, Juniper Capital Acquisition Update and Standalone Full-Year 2025 Guidance

    Source: GlobeNewswire (MIL-OSI)

    HOUSTON, March 05, 2025 (GLOBE NEWSWIRE) — Amplify Energy Corp. (NYSE: AMPY) (“Amplify,” the “Company,” “us,” or “our”) announced today its operating and financial results for the fourth quarter and full-year 2024, year-end 2024 proved reserves, Juniper Capital (“Juniper”) acquisition update and full-year 2025 standalone guidance for the Company.

    Key Highlights

    • 2025 strategic initiatives include:
      • Completing the previously announced transformational combination with certain Juniper portfolio companies which own substantial oil-weighted producing assets and significant leasehold interests in the DJ and Powder River Basins (the “Transaction”) and integrating such assets into our operations
      • Continuing the Beta development program with six completions planned for 2025 including the C-48 and the A-45 which were deferred from the 2024 program
      • Expanding Magnify Energy Services, a wholly owned subsidiary of Amplify (“Magnify”), to enhance Amplify’s competitive advantage in operating our mature assets located in East Texas and Oklahoma
      • Creating incremental value in East Texas by monetizing portions of our portfolio and/or participating in joint development opportunities focused within the Haynesville formation
    • During the fourth quarter of 2024, the Company:
      • Achieved average total production of 18.5 MBoepd
      • Generated net cash provided by operating activities of $12.5 million and a net loss of $7.4 million
      • Delivered Adjusted EBITDA of $21.8 million and Adjusted Net Income of $5.1 million
      • Generated $2.9 million of free cash flow
      • Completed the sale of undeveloped Haynesville acreage in East Texas for $1.4 million
    • For full-year 2024, the Company:
      • Achieved average total production of 19.5 MBoepd
      • Generated net cash provided by operating activities of $51.3 million and net income of $12.9 million
      • Delivered Adjusted EBITDA of $103.0 million and Adjusted Net Income of $35.8 million
      • Generated $18.0 million of free cash flow
      • Renegotiated prior surety bonds and reduced sinking fund payments by approximately $7.0 million per year
      • Initiated development drilling program at Beta, with the completion of two wells, which outperformed type curves
      • Generated $3.1 million of Adjusted EBITDA at Magnify
      • Renegotiated the iodine contract in Oklahoma, increasing annual Adjusted EBITDA by $2.4 million
    • Amplify’s year-end 2024 total proved reserves, utilizing Securities and Exchange Commission (“SEC”) pricing of $75.48/Bbl for oil and NGLs and $2.13/MMBtu for natural gas, totaled 93 MMBoe and had a PV-10 value of approximately $736 million
    • As of December 31, 2024, Amplify had $127.0 million outstanding under the revolving credit facility
      • Net Debt to Last Twelve Months (“LTM”) Adjusted EBITDA of 1.2x1
         
      (1) Net debt as of December 31, 2024, consisting of $127 MM outstanding under its revolving credit facility with ~$0.0 MM of cash and cash equivalents, and LTM Adjusted EBITDA as of the fourth quarter of 2024.
         

    Martyn Willsher, Amplify’s President and Chief Executive Officer, commented, “In early 2024, we told stakeholders that 2024 had the potential to be a transformative year for the Company, and we believe that we delivered on that expectation throughout the year. The recently announced transaction with Juniper Capital expands our operations into the DJ and Powder River Basins, increases our scale, operating efficiency and margins, improves our inventory of attractive drilling locations, and provides us with a new core area for potential M&A activity. The transaction also resulted in a new long-term partnership with Juniper Capital, who have a long history of delivering substantial value to shareholders. At Beta, we safely and successfully initiated a drilling program, which has increased our confidence regarding the future inventory of the field and has enabled us to expand our development plans for this prolific asset in 2025 and beyond.”

    Mr. Willsher continued, “While we have focused our attention and resources on these two significant initiatives, our team has also delivered value to stockholders by pursuing opportunities to reduce operating expenses and maximize the value of our existing asset base. For example, Magnify Energy Services, our wholly owned subsidiary that provides oilfield services to Amplify-operated wells, expanded meaningfully in scope, realizing a significant increase in revenue and efficiency and reducing operating costs in East Texas and Oklahoma. We also renegotiated several existing contracts, like our iodine extraction contract, to receive improved economics. Although smaller in scope, these efforts have demonstrated management’s commitment to identifying areas to improve our operations and deliver value to stockholders. On the value maximizing front, we were able to monetize a portion of our acreage with Haynesville rights for several million dollars, while retaining an interest to realize upside value.”

    Mr. Willsher concluded, “We believe that our strategic and operational accomplishments in 2024 set the foundation for Amplify’s future and that in 2025 we will begin to capitalize on the growth potential of this significantly enhanced asset base.  By delivering on our 2025 strategic initiatives, we believe we can create immediate and long-term value for Amplify’s stockholders.”

    Juniper Capital Rocky Mountain Assets Update

    On January 15, 2025, Amplify announced that it has entered into a definitive merger agreement with privately held Juniper to combine with certain Juniper portfolio companies owning assets and leasehold interests in the DJ and Powder River Basins. Such portfolio companies are oil-weighted and include approximately 287,000 net acres. We expect to close the acquisition in the second quarter of 2025. Amplify has provided more information on the portfolio companies and their assets and the value potential of the Transaction in its latest investor presentation, available on its investor relations website.

    On March 4, 2025, a definitive proxy statement was filed providing additional details on the Transaction. A special meeting of stockholders, to be held virtually, has been scheduled for April 14, 2025, at 9:00 am Central Time, where stockholders of record as of March 3, 2025 can vote to approve the issuance of common stock, par value $0.01 per share (the “Common Stock”) (as described in more detail in the definitive proxy statement) in connection with the Transaction. In order to virtually attend, stockholders must register in advance at www.cesonlineservices.com/ampysm_vm prior to April 13, 2025 at 9:00 a.m. Central Time. More information can be found in the definitive proxy statement on the SEC’s website at www.sec.gov and the Company’s website, www.amplifyenergy.com, under the Investor Relations section. Upon approval from our stockholders of the issuance of Common Stock and the resulting closing of the Transaction, Amplify and Juniper are expected to own approximately 61% and 39%, respectively, of the combined company’s outstanding equity.

    In anticipation of closing, Amplify is currently working with Juniper and its portfolio companies on integrating the Juniper assets into the Amplify organization. Furthermore, the Company expects to refinance a substantial portion of its outstanding debt and approximately $133 million in principal amount of the portfolio companies’ outstanding debt prior to closing the Transaction. Amplify intends to update the market with developments of the Transaction as they progress.

    East Texas Haynesville Monetization Update

    Starting in 2024, several operators expressed increased interest in buying or partnering with Amplify on our East Texas Haynesville interests. In December 2024, Amplify monetized ninety percent (90%) of its interests in certain units with Haynesville rights in Panola and Shelby Counties, while retaining a ten percent (10%) working interest and the ability to participate in any well drilled within the boundary of such units. Upon closing, such transaction generated approximately $1.4 million in proceeds.

    In January 2025, Amplify completed a second transaction with a separate counterparty. Amplify sold ninety percent (90%) of its interest in certain units with Haynesville rights in Harrison County, Texas, in addition to 11 gross operated wells. This transaction also established an Area of Mutual Interest (“AMI”) with the counterparty covering 10,000 gross acres. Amplify retained a ten percent (10%) working interest in the units it divested and purchased a ten percent (10%) working interest in the counterparty’s acreage. Amplify generated net proceeds of $6.2 million from these transactions and estimates the AMI has more than 30 potential gross drilling locations.

    2024 Year-End Proved Reserve Update

    The Company’s estimated proved reserves at SEC pricing for year-end 2024 totaled 93.0 MMBoe, which consisted of 82.2 MMBoe of proved developed reserves and 10.8 MMBoe of proved undeveloped reserves. Proved developed reserves were lower year-over-year, primarily due to lower SEC pricing for oil and natural gas, which fell from $78.22 to $75.48 for oil and from $2.64 to $2.13 for natural gas, and the impact of 2024 production roll-off. Total proved reserves were comprised of 44% oil, 19% NGLs, and 37% natural gas.

    At year-end 2024, Amplify’s total proved reserves and proved developed reserves had PV-10 values of approximately $736 million and $507 million, respectively, using SEC pricing. Proved developed reserve value at Bairoil was lower than 2023 due to a combination of SEC pricing, production performance and higher operating cost assumptions due to significant increases in regulated electricity rates. Proved undeveloped reserves have increased materially as a result of the successful 2024 Beta development program, with the Company adding 23 additional locations and approximately $200 million in PV-10 value. The initial production rates for the two Beta wells brought on-line in 2024 exceeded the type-curves included in our year-end reserve report, and Amplify will consider increasing the type curve assumptions for Beta development wells after evaluating results from the 2025 development program. Detail on the Company’s reserves by asset is provided in the table below. Additionally, Amplify has provided more information on its Beta development program and the substantial value potential of the field in its latest investor presentation, available on its investor relations website.

      Estimated Net Reserves1
    Region MMBoe % Oil and NGL Proved Developed PV-10 Proved Undeveloped PV-10 Total Proved PV-10
          (in millions)
               
    Beta 19.1 100% $144 $214 $358
    Oklahoma 27.0 46% 138 – 138
    Bairoil 16.4 100% 118 – 118
    East Texas/ North Louisiana 28.0 30% 75 4 79
    Eagle Ford (Non-op) 2.5 90% 32 11 43
               
    Total 93.0 63% $507 $229 $736
    (1) Amplify’s year-end 2024 total proved reserves, utilizing SEC pricing of $75.48/Bbl for oil and NGLs and $2.13/MMBtu for natural gas.
       

    Amplify’s reserves estimates were prepared by its third-party independent reserve consultant, Cawley, Gillespie & Associates, Inc.

    Key Financial Results

    During the fourth quarter of 2024, the Company reported a net loss of approximately $7.4 million. The net loss was primarily attributable to a non-cash unrealized loss on commodity derivatives during the period. Excluding the impact of the non-cash unrealized loss on commodity derivatives in addition to other one-time impacts, Amplify generated Adjusted Net Income of $5.1 million in the fourth quarter of 2024.

    Fourth quarter Adjusted EBITDA was $21.8 million, a decrease of approximately $3.7 million from $25.5 million in the prior quarter. The decrease was primarily due to lower realized oil prices (net of hedges) in the fourth quarter compared to the prior quarter.

    Free cash flow was $2.9 million for the fourth quarter, a decrease of $0.7 million compared to the prior quarter. Amplify has now generated positive free cash flow in 18 of the last 19 fiscal quarters.

      Fourth Quarter Third Quarter
    $ in millions 2024   2024  
    Net income (loss)   ($7.4 )   $22.7  
    Net cash provided by operating activities   $12.5     $15.7  
    Average daily production (MBoe/d)   18.5     19.0  
    Total revenues excluding hedges   $69.0     $69.9  
    Adjusted EBITDA (a non-GAAP financial measure)   $21.8     $25.5  
    Adjusted net income (loss), (a non-GAAP financial measure)   $5.1     $9.8  
    Total capital   $15.3     $18.2  
    Free Cash Flow (a non-GAAP financial measure)   $2.9     $3.6  
         

    Revolving Credit Facility

    As of December 31, 2024, Amplify had $127.0 million outstanding under its revolving credit facility, and net debt to LTM Adjusted EBITDA was 1.2x (net debt as of December 31, 2024 and 4Q24 LTM Adjusted EBITDA). Fourth quarter net debt increased from the prior quarter due to expected changes in working capital and increased development activity, primarily at Beta.

    Corporate Production and Pricing

    During the fourth quarter of 2024, average daily production was approximately 18.5 Mboepd, a decrease of 0.5 Mboepd from the prior quarter. The decrease in production was driven by gas volumes, which were impacted by gas plant realizations in East Texas. Our oil volumes, although slightly higher compared to the prior quarter, were impacted by platform shutdowns following the completion of the emission reduction and electrification facility projects and several unexpected well failures and subsequent interventions at Beta. With the successful completion of the electrification and emissions reduction project in the fourth quarter 2024 and the intervention projects completed by end of January 2025, we are projecting Beta production to be significantly higher than the fourth quarter, before the impact of the 2025 drilling program. As of March 2, 2025, current 7-day average production rates at Beta were 4,834 gross Bopd (3,635 net Bopd), representing an approximate 9% increase from fourth quarter 2024 volumes, with minimal contribution from the recently completed C48 well, which we continue to draw down since completing in mid-February.

    The Company’s product mix for the quarter was 45% crude oil, 17% NGLs, and 38% natural gas.

      Three Months   Three Months
      Ended   Ended
      December 31, 2024   September 30, 2024
           
    Production volumes – MBOE:      
    Bairoil   293       294  
    Beta   308       304  
    Oklahoma   436       454  
    East Texas / North Louisiana   609       638  
    Eagle Ford (Non-op)   60       62  
    Total – MBoe   1,706       1,752  
    Total – MBoe/d   18.5       19.0  
    % – Liquids   62 %     60 %
           

    Total oil, natural gas and NGL revenues for the fourth quarter of 2024 were approximately $67.2 million, before the impact of derivatives. The Company realized a net gain on commodity derivatives of $4.1 million during the fourth quarter. Oil, natural gas and NGL revenues, net of realized hedges, decreased $3.3 million for the fourth quarter compared to the prior quarter.

    The following table sets forth information regarding average realized sales prices for the periods indicated:

      Crude Oil ($/Bbl) NGLs ($/Bbl) Natural Gas ($/Mcf)
                           
      Three Months Ended December 31, 2024   Three Months Ended September 30, 2024   Three Months Ended December 31, 2024   Three Months Ended September 30, 2024   Three Months Ended December 31, 2024   Three Months Ended September 30, 2024
                           
    Average sales price exclusive of realized derivatives and certain deductions from revenue $ 66.82     $ 71.74     $ 23.46     $ 21.63     $ 2.52     $ 1.84  
    Realized derivatives   1.43       (0.24 )     –       –       0.76       1.38  
                           
    Average sales price with realized derivatives exclusive of certain deductions from revenue $ 68.25     $ 71.50     $ 23.46     $ 21.63     $ 3.28     $ 3.22  
    Certain deductions from revenue   –       –       (1.37 )     (1.33 )     (0.01 )     0.00  
                           
    Average sales price inclusive of realized derivatives and certain deductions from revenue $ 68.25     $ 71.50     $ 22.09     $ 20.30     $ 3.27     $ 3.22  
                           

    Costs and Expenses

    Lease operating expenses in the fourth quarter of 2024 were approximately $35.1 million, or $20.57 per Boe, a $1.8 million increase compared to the prior quarter. Due to increased well failures in the fourth quarter, Beta lease operating costs were higher compared to the prior quarter. Lease operating expenses do not reflect $0.9 million of income generated by Magnify in the fourth quarter.

    Severance and ad valorem taxes in the fourth quarter were approximately $5.4 million, a decrease of $0.6 million compared to $6.0 million in the prior quarter, and in line with expectations. Severance and ad valorem taxes as a percentage of revenue were approximately 8.0% in the fourth quarter.

    Amplify incurred $4.5 million, or $2.62 per Boe, of gathering, processing and transportation expenses in the fourth quarter, compared to $4.3 million, or $2.45 per Boe, in the prior quarter.

    Cash G&A expenses in the fourth quarter were $6.3 million, an increase of $0.1 million compared to the prior quarter and in-line with expectations.

    Depreciation, depletion and amortization expense in the fourth quarter totaled $8.4 million, or $4.93 per Boe, compared to $8.1 million, or $4.62 per Boe, in the prior quarter.

    Net interest expense was $3.7 million in the fourth quarter, a decrease of $0.1 million compared to $3.8 million in the prior quarter.

    Amplify recorded a current income tax benefit of $2.1 million in the fourth quarter.

    Fourth Quarter and Full-Year Capital Investments

    Cash capital investment during the fourth quarter of 2024 was approximately $15.3 million. During the fourth quarter, the Company’s capital allocation was approximately 65% for Beta development drilling and facility projects, with the remainder distributed across the Company’s other assets.

    The following table details Amplify’s capital invested during the fourth quarter of 2024:

      Fourth Quarter   Full-Year
      2024 Capital   2024 Capital
      ($ MM)   ($ MM)
    Bairoil $ 0.2     $ 2.9  
    Beta $ 10.0     $ 53.7  
    Oklahoma $ 0.1     $ 3.2  
    East Texas / North Louisiana $ 2.8     $ 5.6  
    Eagle Ford (Non-op) $ 2.1     $ 4.1  
    Magnify Energy Services $ 0.1     $ 1.1  
    Total Capital Invested $ 15.3     $ 70.6  
           

    2025 Operations & Development Plan

    The following table details Amplify’s 2025 projected capital investments of $70 – $80 million:

    Capital Investment by Type (% of Total):  
    Beta Development 41 %
    Beta Facility 16 %
    Workovers & Other Facilities 25 %
    Non-op Development 18 %
    Total Capital Investments: 100 %
         

    Amplify’s 2025 operations and development plan is designed to continue unlocking the underlying value of the Company’s assets. To achieve this goal, we intend to 1) continue our development program at Beta, 2) execute on low-cost, high-return workover projects, and 3) reduce operating costs by increasing activity at Magnify.

    At Beta, Amplify intends to complete six wells in 2025. The C48 well, the first of the six wells to be completed in 2025, was drilled in the fourth quarter of 2024 and completed in mid-February. Similar to the A50 and C59 wells drilled in 2024, the completion of the C48 well was initially designed to target the D-sand. However, drilling conditions encountered in the D-sand and the quality of the C-Sand observed while drilling through the formation, led the team to alter the completion design and target the C-sand instead. The C48 will be the first test of the horizontal potential of the C-sand and we will share the results of the C48 well after obtaining sufficient initial production data.

    In 2024 Amplify brought online two new wells at Beta, the A50 well (brought online in June) and the C59 well (brought online in October), both of which exceeded internal projections and increased Beta’s overall production approximately 15% in January 2025 compared to January of 2024. Similarly, the six Beta completions planned in 2025 are expected to significantly increase Amplify’s oil production year-over-year. Additional information regarding the Beta development plan can be found in the investor presentation on the Company’s investor relations website.

    In addition to drilling and completing the six wells, Amplify intends to make continued investments in Beta’s facilities. In 2025, the Company expects to invest approximately $8 million to upgrade a 2-mile pipeline that ships all produced fluid from platform Eureka to platform Elly.

    At Bairoil, we continue to focus on enhancing water-alternating-gas injection performance through targeted well recompletions and conversions, which helps offset the asset’s nominal production declines. Our plan also includes an investment at our CO2 gas plant intended to reduce overall power usage and lease operating expenses in the second half of 2025.

    Amplify’s operating strategy in Oklahoma remains focused on prioritizing a stable free cash flow profile by managing production through an active workover program, artificial lift enhancements, extending well run-times and continuing to reduce operating costs.

    In East Texas, we are participating in the completion of four non-operated development projects, which we expect to be online by mid-year. The Company also continues to focus on prudent management of the field, such as optimizing field compression, artificial lift enhancement, and equipment insourcing, which is expected to improve the production profile and lower lease operating costs.

    In late 2023, we formed Magnify to in-source specific oilfield services to improve service reliability and to reduce overall operating expenses for the Company. Since its inception, Magnify has generated $3.7 million of Adjusted EBITDA with a capital investment of only $1.7 million. In 2025, we expect to invest an additional $1.4 million of capital in Magnify and project 2025 Adjusted EBITDA of approximately $5 million (with an annualized run rate of $6 million by year-end). We are evaluating additional accretive services for Magnify to service Amplify operated assets.

    In the Eagle Ford, we are participating in 14 gross (0.7 net) new development wells and two gross (0.4 net) recompletion projects. These non-operated wells, with highly accretive returns, are currently scheduled to be completed in the first half of 2025.

    Full-Year 2025 Guidance

    The following standalone guidance is subject to the cautionary statements and limitations described under the “Forward-Looking Statements” caption at the end of this press release. Amplify’s 2025 guidance is based on its current expectations regarding capital investment levels and flat commodity prices for crude oil of $71/Bbl (WTI) and natural gas of $3.75/MMBtu (Henry Hub), and on the assumption that market demand and prices for oil and natural gas will continue at levels that allow for economic production of these products. Additionally, the Company expects to invest approximately 90% of its capital in the first three quarters of the year primarily in connection with the Beta development program. Upon closing of the Transaction with Juniper, the Company will provide updated guidance to include the acquired assets.

    A summary of the standalone guidance is presented below:

      FY 2025E
           
      Low   High
           
    Net Average Daily Production      
    Oil (MBbls/d) 8.5 – 9.4
    NGL (MBbls/d) 3.0 – 3.3
    Natural Gas (MMcf/d) 45.0 – 51.0
    Total (MBoe/d) 19.0 – 21.0
           
    Commodity Price Differential / Realizations (Unhedged)      
    Oil Differential ($ / Bbl) ($3.25) – ($4.25)
    NGL Realized Price (% of WTI NYMEX) 27% – 31%
    Natural Gas Realized Price (% of Henry Hub) 85% – 92%
           
    Other Revenue      
    Magnify Energy Services ($ MM) $4 – $6
    Other ($ MM) $2 – $3
    Total ($ MM) $6 – $9
           
    Gathering, Processing and Transportation Costs      
    Oil ($ / Bbl) $0.65 – $0.85
    NGL ($ / Bbl) $2.75 – $4.00
    Natural Gas ($ / Mcf) $0.55 – $0.75
    Total ($ / Boe) $2.25 – $2.85
           
    Average Costs      
    Lease Operating ($ / Boe) $18.50 – $20.50
    Taxes (% of Revenue) (1) 6.0% – 7.0%
    Cash General and Administrative ($ / Boe) (2)(3) $3.40 – $3.90
           
    Adjusted EBITDA ($ MM) (2)(3) $100 – $120
    Cash Interest Expense ($ MM) $12 – $18
    Capital Expenditures ($ MM) $70 – $80
    Free Cash Flow ($ MM) (2)(3) $10 – $30
           
    (1) Includes production, ad valorem and franchise taxes
    (2) Refer to “Use of Non-GAAP Financial Measures” for Amplify’s definition and use of Cash G&A, Adjusted EBITDA and free cash flow, non-GAAP measures (cash income taxes, which are not included in free cash flow, are expected to range between $0 – $2 million for the year)
    (3) Amplify believes that a quantitative reconciliation of such forward-looking information to the most comparable financial measure calculated and presented in accordance with GAAP cannot be made available without unreasonable efforts. A reconciliation of these non-GAAP financial measures would require Amplify to predict the timing and likelihood of future transactions and other items that are difficult to accurately predict. Neither of these forward-looking measures, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of the most directly comparable forward-looking GAAP measures is not provided.
     

    Hedging

    Recently, the Company took advantage of volatility in the futures market to add to its hedge position, further protecting future cash flows. Amplify executed crude oil swaps covering the second half of 2025 through year-end 2026 at a weighted average price of $68.10. The Company also added natural gas collars for a portion of 2027 with a weighted average floor of $3.63 per MMBtu and a weighted average ceiling of $3.98 per MMBtu.

    The following table reflects the hedged volumes under Amplify’s commodity derivative contracts and the average fixed floor and ceiling prices at which production is hedged for January 2025 through December 2027, as of March 4, 2025:

        2025       2026       2027  
               
    Natural Gas Swaps:          
    Average Monthly Volume (MMBtu)   585,000       500,000       87,500  
    Weighted Average Fixed Price ($) $ 3.75     $ 3.79     $ 3.76  
               
    Natural Gas Collars:          
    Two-way collars          
    Average Monthly Volume (MMBtu)   500,000       500,000       87,500  
    Weighted Average Ceiling Price ($) $ 3.90     $ 4.06     $ 4.20  
    Weighted Average Floor Price ($) $ 3.50     $ 3.55     $ 3.50  
               
    Oil Swaps:          
    Average Monthly Volume (Bbls)   128,583       72,750      
    Weighted Average Fixed Price ($) $ 70.85     $ 69.19      
               
    Oil Collars:          
    Two-way collars          
    Average Monthly Volume (Bbls)   59,500          
    Weighted Average Ceiling Price ($) $ 80.20          
    Weighted Average Floor Price ($) $ 70.00          
               

    Amplify has posted an updated investor presentation containing additional hedging information on its website, www.amplifyenergy.com, under the Investor Relations section.

    Annual Report on Form 10-K

    Amplify’s financial statements and related footnotes will be available in its Annual Report on Form 10-K for the year ended December 31, 2024, which Amplify expects to file with the SEC on March 5, 2025.

    About Amplify Energy

    Amplify Energy Corp. is an independent oil and natural gas company engaged in the acquisition, development, exploitation and production of oil and natural gas properties. Amplify’s operations are focused in Oklahoma, the Rockies (Bairoil), federal waters offshore Southern California (Beta), East Texas / North Louisiana, and the Eagle Ford (Non-op). For more information, visit www.amplifyenergy.com.

    Conference Call

    Amplify will host an investor teleconference tomorrow at 10 a.m. Central Time to discuss these operating and financial results. Interested parties may join the call by dialing (888) 999-5318 at least 15 minutes before the call begins and providing the Conference ID: AEC4Q24. A telephonic replay will be available for fourteen days following the call by dialing (800) 654-1563 and providing the Access Code: 71724906. A transcript and a recorded replay of the call will also be available on our website after the call.

    Forward-Looking Statements

    This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Terminology such as “may,” “will,” “would,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “pursue,” “target,” “outlook,” “continue,” the negative of such terms or other comparable terminology are intended to identify forward-looking statements. These statements include, but are not limited to, statements about the Company’s expectations of plans, goals, strategies (including measures to implement strategies), objectives and anticipated results with respect thereto. These statements address activities, events or developments that we expect or anticipate will or may occur in the future, including things such as projections of results of operations, plans for growth, goals, future capital expenditures, competitive strengths, references to future intentions and other such references. These forward-looking statements involve risks and uncertainties and other factors that could cause the Company’s actual results or financial condition to differ materially from those expressed or implied by forward-looking statements. These include risks and uncertainties relating to, among other things: the Company’s ability to successfully complete the proposed business combination between the Company and certain of Juniper’s portfolio companies, or the “Mergers”; the Company’s evaluation and implementation of strategic alternatives; risks related to the redetermination of the borrowing base under the Company’s revolving credit facility; the Company’s ability to satisfy debt obligations; the Company’s need to make accretive acquisitions or substantial capital expenditures to maintain its declining asset base, including the existence of unanticipated liabilities or problems relating to acquired or divested business or properties; volatility in the prices for oil, natural gas and NGLs; the Company’s ability to access funds on acceptable terms, if at all, because of the terms and conditions governing the Company’s indebtedness, including financial covenants; general political and economic conditions, globally and in the jurisdictions in which we operate, including the Russian invasion of Ukraine, and ongoing conflicts in the Middle East, and the potential destabilizing effect such conflicts may pose for the global oil and natural gas markets; expectations regarding general economic conditions, including inflation; and the impact of local, state and federal governmental regulations, including those related to climate change and hydraulic fracturing, and the current administration’s potential reversal thereof. Please read the Company’s filings with the SEC, including “Risk Factors” in the Company’s Annual Report on Form 10-K, and if applicable, the Company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, which are available on the Company’s Investor Relations website at https://www.amplifyenergy.com/investor-relations/sec-filings/default.aspx or on the SEC’s website at http://www.sec.gov, for a discussion of risks and uncertainties that could cause actual results to differ from those in such forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements in this press release are qualified in their entirety by these cautionary statements. Except as required by law, the Company undertakes no obligation and does not intend to update or revise any forward-looking statements, whether as a result of new information, future results or otherwise.

    No Offer or Solicitation

    A portion of this press release relates to a proposed business combination transaction between the Company and certain Juniper portfolio companies. This communication is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, in any jurisdiction, pursuant to the proposed business combination transaction or otherwise, nor shall there be any sale, issuance, exchange or transfer of the securities referred to in this document in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

    Important Additional Information Regarding the Mergers Will Be Filed With the SEC

    In connection with the proposed transaction, the Company has filed a definitive proxy statement. The definitive proxy statement will be sent to the stockholders of the Company. The Company may also file other documents with the SEC regarding the proposed transaction. INVESTORS AND SECURITY HOLDERS OF AMPLIFY ARE ADVISED TO CAREFULLY READ THE DEFINITIVE PROXY STATEMENT AND ANY OTHER RELEVANT MATERIALS FILED WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE MERGERS, THE PARTIES TO THE MERGERS AND THE RISKS ASSOCIATED WITH THE MERGERS. Investors and security holders may obtain a free copy of the definitive proxy statement and other relevant documents filed by Amplify with the SEC from the SEC’s website at www.sec.gov. Security holders and other interested parties will also be able to obtain, without charge, a copy of the definitive proxy statement and other relevant documents (when available) by (1) directing your written request to: 500 Dallas Street, Suite 1700, Houston, Texas or (2) contacting our Investor Relations department by telephone at (832) 219-9044 or (832) 219-9051. Copies of the documents filed by the Company with the SEC will be available free of charge on the Company’s website at http://www.amplifyenergy.com.

    Participants in the Solicitation

    Amplify and certain of its respective directors, executive officers and employees may be considered participants in the solicitation of proxies in connection with the proposed transaction. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of the stockholders of Amplify in connection with the proposed transaction, including a description of their respective direct or indirect interests, by security holdings or otherwise, is included in the definitive proxy statement filed with the SEC. Additional information regarding the Company’s directors and executive officers is also included in Amplify’s Notice of Annual Meeting of Stockholders and 2024 Proxy Statement, which was filed with the SEC on April 5, 2024. These documents are available free of charge as described above.

    Use of Non-GAAP Financial Measures

    This press release and accompanying schedules include the non-GAAP financial measures of Adjusted EBITDA, Adjusted net income, free cash flow, net debt, PV-10 and cash G&A. The accompanying schedules provide a reconciliation of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with GAAP. Amplify’s non-GAAP financial measures should not be considered as alternatives to GAAP measures such as net income, operating income, net cash flows provided by operating activities, standardized measure of discounted future net cash flows, or any other measure of financial performance calculated and presented in accordance with GAAP. Amplify’s non-GAAP financial measures may not be comparable to similarly titled measures of other companies because they may not calculate such measures in the same manner as Amplify does.

    Adjusted EBITDA. Amplify defines Adjusted EBITDA as net income (loss) plus Interest expense; Income tax expense (benefit); DD&A; Impairment of goodwill and long-lived assets (including oil and natural gas properties); Accretion of AROs; Loss or (gain) on commodity derivative instruments; Cash settlements received or (paid) on expired commodity derivative instruments; Amortization of gain associated with terminated commodity derivatives; Losses or (gains) on sale of assets and other, net; Share-based compensation expenses; Exploration costs; Acquisition and divestiture related expenses; Reorganization items, net; Severance payments; and Other non-routine items that we deem appropriate. Adjusted EBITDA is commonly used as a supplemental financial measure by management and external users of Amplify’s financial statements, such as investors, research analysts and rating agencies, to assess: (1) its operating performance as compared to other companies in Amplify’s industry without regard to financing methods, capital structures or historical cost basis; (2) the ability of its assets to generate cash sufficient to pay interest and support Amplify’s indebtedness; and (3) the viability of projects and the overall rates of return on alternative investment opportunities. Since Adjusted EBITDA excludes some, but not all, items that affect net income or loss and because these measures may vary among other companies, the Adjusted EBITDA data presented in this press release may not be comparable to similarly titled measures of other companies. The GAAP measures most directly comparable to Adjusted EBITDA are net income and net cash provided by operating activities.

    Adjusted Net Income. Amplify defines Adjusted Net Income as net income (loss) adjusted for loss (gain) on commodity derivative instruments, acquisition & divestiture related expenses, unusual and infrequent items, and the income tax expense or benefit of these adjustments using our federal statutory tax rate. Adjusted Net Income (Loss) excludes the impact of unusual and infrequent items affecting earnings that vary widely and unpredictably, including derivative gains and losses. This measure is not meant to disassociate these items from management’s performance but rather is intended to provide helpful information to investors interested in comparing our performance between periods. Adjusted net income (loss) is not considered to be an alternative to net income (loss) reported in accordance with GAAP.

    Free cash flow. Amplify defines free cash flow as Adjusted EBITDA, less cash interest expense and capital expenditures. Free cash flow is an important non-GAAP financial measure for Amplify’s investors since it serves as an indicator of the Company’s success in providing a cash return on investment. The GAAP measures most directly comparable to free cash flow are net income and net cash provided by operating activities.

    Net debt. Amplify defines net debt as the total principal amount drawn on the revolving credit facility less cash and cash equivalents. The Company uses net debt as a measure of financial position and believes this measure provides useful additional information to investors to evaluate the Company’s capital structure and financial leverage.

    PV-10. PV-10 is a non-GAAP financial measure that represents the present value of estimated future cash inflows from proved oil and natural gas reserves that are calculated using the unweighted arithmetic average first-day-of-the-month prices for the prior 12 months, less future development and operating costs, discounted at 10% per annum to reflect the timing of future cash flows. The most directly comparable GAAP measure to PV-10 is standardized measure. PV-10 differs from standardized measure in its treatment of estimated future income taxes, which are excluded from PV-10. Amplify believes the presentation of PV-10 provides useful information because it is widely used by investors in evaluating oil and natural gas companies without regard to specific income tax characteristics of such entities. PV-10 is not intended to represent the current market value of our estimated proved reserves. PV-10 should not be considered in isolation or as a substitute for the standardized measure as defined under GAAP.

    Cash G&A. Amplify defines cash G&A as general and administrative expense, less share-based compensation expense; acquisition and divestiture costs; bad debt expense; and severance payments. Cash G&A is an important non-GAAP financial measure for Amplify’s investors since it allows for analysis of G&A spend without regard to share-based compensation and other non-recurring expenses which can vary substantially from company to company. The GAAP measures most directly comparable to cash G&A is total G&A expenses.

    Contacts

    Jim Frew — Senior Vice President and Chief Financial Officer
    (832) 219-9044
    jim.frew@amplifyenergy.com

    Michael Jordan — Director, Finance and Treasurer
    (832) 219-9051
    michael.jordan@amplifyenergy.com


    Selected Operating and Financial Data (Tables)

    Amplify Energy Corp.
    Selected Financial Data – Unaudited
    Statements of Operations Data
           
      Three Months   Three Months
      Ended   Ended
    (Amounts in $000s, except per share data) December 31, 2024   September 30, 2024
           
    Revenues:      
    Oil and natural gas sales $ 67,189     $ 68,135  
    Other revenues   1,832       1,723  
    Total revenues   69,021       69,858  
           
    Costs and Expenses:      
    Lease operating expense   35,100       33,255  
    Pipeline incident loss   2,405       247  
    Gathering, processing and transportation   4,468       4,290  
    Exploration   10       –  
    Taxes other than income   5,356       5,997  
    Depreciation, depletion and amortization   8,418       8,102  
    General and administrative expense   9,486       8,251  
    Accretion of asset retirement obligations   2,156       2,125  
    Realized (gain) loss on commodity derivatives   (4,052 )     (6,375 )
    Unrealized (gain) loss on commodity derivatives   13,357       (18,672 )
    (Gain) loss on sale of properties   (1,367 )     –  
    Other, net   334       38  
    Total costs and expenses   75,671       37,258  
           
    Operating Income (loss)   (6,650 )     32,600  
           
    Other Income (Expense):      
    Interest expense, net   (3,684 )     (3,756 )
    Other income (expense)   (113 )     (130 )
    Total other income (expense)   (3,797 )     (3,886 )
           
    Income (loss) before reorganization items, net and income taxes   (10,447 )     28,714  
           
    Income tax benefit (expense) – current   2,132       (412 )
    Income tax benefit (expense) – deferred   886       (5,650 )
           
    Net income (loss) $ (7,429 )   $ 22,652  
           
    Earnings per share:      
    Basic and diluted earnings (loss) per share $ (0.19 )   $ 0.54  
           
    Selected Financial Data – Unaudited      
    Operating Statistics      
           
      Three Months   Three Months
      Ended   Ended
    (Amounts in $000s, except per unit data) December 31, 2024   September 30, 2024
           
    Oil and natural gas revenue:      
    Oil Sales $ 50,817     $ 54,353  
    NGL Sales   6,602       6,096  
    Natural Gas Sales   9,770       7,686  
    Total oil and natural gas sales – Unhedged $ 67,189     $ 68,135  
           
    Production volumes:      
    Oil Sales – MBbls   760       758  
    NGL Sales – MBbls   299       301  
    Natural Gas Sales – MMcf   3,883       4,165  
    Total – MBoe   1,706       1,752  
    Total – MBoe/d   18.5       19.0  
           
    Average sales price (excluding commodity derivatives):      
    Oil – per Bbl $ 66.82     $ 71.74  
    NGL – per Bbl $ 22.09     $ 20.29  
    Natural gas – per Mcf $ 2.52     $ 1.85  
    Total – per Boe $ 39.37     $ 38.88  
           
    Average unit costs per Boe:      
    Lease operating expense $ 20.57     $ 18.98  
    Gathering, processing and transportation $ 2.62     $ 2.45  
    Taxes other than income $ 3.14     $ 3.42  
    General and administrative expense $ 5.56     $ 4.71  
    Realized gain/(loss) on commodity derivatives $ 2.38     $ 3.64  
    Depletion, depreciation, and amortization $ 4.93     $ 4.62  
           
    Selected Financial Data – Unaudited      
    Asset Operating Statistics      
           
      Three Months   Three Months
      Ended   Ended
      December 31, 2024   September 30, 2024
           
    Production volumes – MBOE:      
    Bairoil   293       294  
    Beta   308       304  
    Oklahoma   436       454  
    East Texas / North Louisiana   609       638  
    Eagle Ford (Non-op)   60       62  
    Total – MBoe   1,706       1,752  
    Total – MBoe/d   18.5       19.0  
    % – Liquids   62 %     60 %
           
    Lease operating expense – $M:      
    Bairoil $ 11,800     $ 13,164  
    Beta   12,113       9,520  
    Oklahoma   3,948       3,644  
    East Texas / North Louisiana   5,887       5,592  
    Eagle Ford (Non-op)   1,351       1,335  
    Total Lease operating expense: $ 35,099     $ 33,255  
           
    Capital expenditures – $M:      
    Bairoil $ 190     $ 1,224  
    Beta   10,001       12,047  
    Oklahoma   168       1,449  
    East Texas / North Louisiana   2,758       2,303  
    Eagle Ford (Non-op)   2,125       1,157  
    Magnify Energy Services   82       44  
    Total Capital expenditures: $ 15,324     $ 18,224  
           
    Selected Financial Data – Unaudited              
    Balance Sheet Data              
                   
    (Amounts in $000s) December 31, 2024   September 30, 2024
                   
    Assets              
    Cash and Cash Equivalents $ –     $ –  
    Accounts Receivable   39,713       32,295  
    Other Current Assets   32,064       37,862  
    Total Current Assets $ 71,777     $ 70,157  
                   
    Net Oil and Gas Properties $ 386,218     $ 378,871  
    Other Long-Term Assets   289,081       290,188  
    Total Assets $ 747,076     $ 739,216  
                   
    Liabilities              
    Accounts Payable $ 13,231     $ 18,107  
    Accrued Liabilities   43,413       36,699  
    Other Current Liabilities   11,494       11,362  
    Total Current Liabilities $ 68,138     $ 66,168  
                   
    Long-Term Debt $ 127,000     $ 120,000  
    Asset Retirement Obligation   129,700       127,556  
    Other Long-Term Liabilities   13,326       10,822  
    Total Liabilities $ 338,164     $ 324,546  
                   
    Shareholders’ Equity              
    Common Stock & APIC $ 440,380     $ 438,709  
    Accumulated Earnings (Deficit)   (31,468 )     (24,039 )
    Total Shareholders’ Equity $ 408,912     $ 414,670  
                   
    Selected Financial Data – Unaudited      
    Statements of Cash Flows Data      
           
      Three Months   Three Months
      Ended   Ended
    (Amounts in $000s) December 31, 2024   September 30, 2024
           
           
    Net cash provided by (used in) operating activities $ 12,455     $ 15,737  
    Net cash provided by (used in) investing activities   (19,379 )     (18,078 )
    Net cash provided by (used in) financing activities   6,924       1,839  
           
    Selected Operating and Financial Data (Tables)
    Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
    Adjusted EBITDA and Free Cash Flow
           
      Three Months   Three Months
      Ended   Ended
    (Amounts in $000s) December 31, 2024   September 30, 2024
           
    Reconciliation of Adjusted EBITDA to Net Cash Provided from Operating Activities:    
    Net cash provided by operating activities $ 12,455     $ 15,737  
    Changes in working capital   4,770       5,937  
    Interest expense, net   3,684       3,756  
    Cash settlements received on terminated commodity derivatives   –       (793 )
    Amortization of gain associated with terminated commodity derivatives   159       –  
    Amortization and write-off of deferred financing fees   (315 )     (310 )
    Exploration costs   10       –  
    Acquisition and divestiture related costs   1,424       186  
    Plugging and abandonment cost   754       372  
    Current income tax expense (benefit)   (2,132 )     412  
    Pipeline incident loss   2,405       247  
    (Gain) loss on sale of properties   (1,367 )     –  
    Adjusted EBITDA: $ 21,847     $ 25,544  
           
    Reconciliation of Free Cash Flow to Net Cash Provided from Operating Activities:    
    Adjusted EBITDA: $ 21,847     $ 25,544  
    Less: Cash interest expense   3,598       3,721  
    Less: Capital expenditures   15,324       18,224  
    Free Cash Flow: $ 2,925     $ 3,599  
           
    Selected Operating and Financial Data (Tables)
    Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
    Adjusted EBITDA and Free Cash Flow
           
           
      Twelve Months   Twelve Months
      Ended   Ended
    (Amounts in $000s, except per share data) December 31, 2024   December 31, 2023
           
    Reconciliation of Adjusted EBITDA1to Net Cash Provided from Operating Activities:    
    Net cash provided by operating activities $ 51,293     $ 141,590  
    Changes in working capital   32,272       (8,517 )
    Interest expense, net   14,599       17,719  
    Cash settlements received on terminated commodity derivatives   (793 )     (658 )
    Amortization of gain associated with terminated commodity derivatives   159       658  
    Amortization and write-off of deferred financing fees   (1,233 )     (1,980 )
    Exploration costs   61       57  
    Acquisition and divestiture related costs   1,633       219  
    Plugging and abandonment cost   1,640       2,239  
    Current income tax expense (benefit)   232       4,817  
    Pipeline incident loss   3,859       19,981  
    (Gain) loss on sale of properties   (1,367 )     –  
    LOPI – timing differences   –       (4,636 )
    Litigation settlement   –       (84,875 )
    Other   686       1,418  
    Adjusted EBITDA: $ 103,041     $ 88,032  
           
    Reconciliation of Free Cash Flow to Net Cash Provided from Operating Activities:    
    Adjusted EBITDA1: $ 103,041     $ 88,032  
    Less: Cash interest expense   14,438       16,263  
    Less: Capital expenditures   70,644       33,744  
    Free Cash Flow: $ 17,959     $ 38,025  
      (1) Adjusted EBITDA includes a revenue suspense release of $8.4 million for the twelve months ended December 31, 2024. See “Revenue Payables in Suspense” table for additional information.
         
    Selected Operating and Financial Data (Tables)
    Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
    Adjusted EBITDA1 and Free Cash Flow
           
      Three Months   Three Months
      Ended   Ended
    (Amounts in $000s) December 31, 2024   September 30, 2024
           
    Reconciliation of Adjusted EBITDA to Net Income (Loss):      
    Net income (loss) $ (7,429 )   $ 22,652  
    Interest expense, net   3,684       3,756  
    Income tax expense (benefit) – current   (2,132 )     412  
    Income tax expense (benefit) – deferred   (886 )     5,650  
    Depreciation, depletion and amortization   8,418       8,102  
    Accretion of asset retirement obligations   2,156       2,125  
    (Gains) losses on commodity derivatives   9,305       (25,047 )
    Cash settlements received (paid) on expired commodity derivative instruments   4,052       5,582  
    Amortization of gain associated with terminated commodity derivatives   159       –  
    Acquisition and divestiture related costs   1,424       186  
    Share-based compensation expense   1,686       1,815  
    (Gain) loss on sale of properties   (1,367 )     –  
    Exploration costs   10       –  
    Loss on settlement of AROs   334       38  
    Bad debt expense   28       26  
    Pipeline incident loss   2,405       247  
    Adjusted EBITDA1: $ 21,847     $ 25,544  
           
    Reconciliation of Free Cash Flow to Net Income (Loss):      
    Adjusted EBITDA: $ 21,847     $ 25,544  
    Less: Cash interest expense   3,598       3,721  
    Less: Capital expenditures   15,324       18,224  
    Free Cash Flow: $ 2,925     $ 3,599  
           
    Selected Operating and Financial Data (Tables)
    Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
    Adjusted EBITDA and Free Cash Flow
           
           
      Twelve Months   Twelve Months
      Ended   Ended
    (Amounts in $000s, except per share data) December 31, 2024   December 31, 2023
           
           
    Reconciliation of Adjusted EBITDA1to Net Income (Loss):      
    Net income (loss) $ 12,946     $ 392,750  
    Interest expense, net   14,599       17,719  
    Income tax expense (benefit) – current   232       4,817  
    Income tax expense (benefit) – deferred   2,196       (253,796 )
    Depreciation, depletion and amortization   32,586       28,004  
    Accretion of asset retirement obligations   8,438       7,951  
    (Gains) losses on commodity derivatives   2,047       (40,343 )
    Cash settlements received (paid) on expired commodity derivative instruments   17,617       (8,273 )
    Amortization of gain associated with terminated commodity derivatives   159       658  
    Acquisition and divestiture related costs   1,633       219  
    Share-based compensation expense   6,799       5,280  
    (Gain) loss on sale of properties   (1,367 )     –  
    Exploration costs   61       57  
    Loss on settlement of AROs   470       1,003  
    Bad debt expense   80       98  
    Pipeline incident loss   3,859       19,981  
    LOPI – timing differences   –       (4,636 )
    Litigation settlement   –       (84,875 )
    Other   686       1,418  
    Adjusted EBITDA: $ 103,041     $ 88,032  
           
    Reconciliation of Free Cash Flow to Net Income (Loss):      
    Adjusted EBITDA1: $ 103,041     $ 88,032  
    Less: Cash interest expense   14,438       16,263  
    Less: Capital expenditures   70,644       33,744  
    Free Cash Flow: $ 17,959     $ 38,025  
      (1) Adjusted EBITDA includes a revenue suspense release of $8.4 million for the twelve months ended December 31, 2024. See “Revenue Payables in Suspense” table for additional information.
         
    Selected Operating and Financial Data (Tables)
    Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
    Net Income (Loss) to Adjusted Net Income (Loss)
           
      Three Months   Three Months
      Ended   Ended
    (Amounts in $000s, except per share data) December 31, 2024   September 30, 2024
           
    Reconciliation of Adjusted Net Income (Loss):      
    Net income (loss) $ (7,429 )   $ 22,652  
    Unrealized (gain) loss on commodity derivatives   13,357       (18,672 )
    Acquisition and divestiture related costs   1,424       186  
    Non-recurring costs:      
    Income tax expense (benefit) – deferred   (886 )     5,650  
    Gain on sale of properties   (1,367 )     –  
    Litigation settlement   –       –  
    Tax effect of adjustments   (12 )     (39 )
    Adjusted net income (loss) $ 5,087     $ 9,777  
           
    Selected Operating and Financial Data (Tables)
    Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
    Net Income (Loss) to Adjusted Net Income (Loss)
           
      Twelve Months   Twelve Months
      Ended   Ended
    (Amounts in $000s, except per share data) December 31, 2024   December 31, 2023
           
    Reconciliation of Adjusted Net Income (Loss):      
    Net income (loss) $ 12,946     $ 392,750  
    Unrealized (gain) loss on commodity derivatives   20,457       (47,958 )
    Acquisition and divestiture related costs   1,633       219  
    Non-recurring costs:      
    Income tax expense (benefit) – deferred1   2,196       (253,796 )
    Gain on sale of properties   (1,367 )     –  
    Litigation settlement2   –       (84,875 )
    Tax effect of adjustments3   (56 )     17,778  
    Adjusted net income (loss) $ 35,809     $ 24,118  
      (1) In 2023, we achieved three years of cumulative book income which resulted in the release of our valuation allowance of $284.9 million.
      (2) In 2023, non-recurring costs included a litigation settlement with the shipping companies and the containerships whose anchors struck the Company’s pipeline.
      (3) The federal statutory rates were utilized for all periods presented.
         
    Selected Operating and Financial Data (Tables)
    Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
    Cash General and Administrative Expenses
                   
      Three Months      Three Months
      Ended   Ended
    (Amounts in $000s) December 31, 2024   September 30, 2024
                   
    General and administrative expense $ 9,486     $ 8,251  
    Less: Share-based compensation expense   1,686       1,815  
    Less: Acquisition and divestiture costs   1,424       186  
    Less: Bad debt expense   28       26  
    Less: Severance payments   —       —  
    Total Cash General and Administrative Expense $ 6,348     $ 6,224  
                   
    Selected Operating and Financial Data (Tables)
    Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
    Cash General and Administrative Expenses
                   
      Twelve Months      Twelve Months
      Ended   Ended
    (Amounts in $000s) December 31, 2024   December 31, 2023
                   
    General and administrative expense $ 35,895     $ 32,984  
    Less: Share-based compensation expense   6,799       5,280  
    Less: Acquisition and divestiture costs   1,633       219  
    Less: Bad debt expense   80       98  
    Less: Severance payments   344       965  
    Total Cash General and Administrative Expense $ 27,039     $ 26,422  
                   
    Selected Operating and Financial Data (Tables)
    Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures
    Revenue Payables in Suspense
           
      Three Months      Twelve Months
      Ended   Ended
    (Amounts in $000s) December 31, 2024   December 31, 2024
           
           
    Oil and natural gas sales $ –     $ 4,023  
    Other revenues   –       4,829  
    Severance tax and other deducts   –       (433 )
    Total net revenue $ –     $ 8,419  
           
    Production volumes:      
    Oil (MBbls)   –       33  
    NGLs (MBbls)   –       31  
    Natural gas (MMcf)   –       441  
    Total (Mboe)   –       138  
    Total (Mboe/d)   –       0.38  
           
        As of       As of  
      December 31,       December 31,  
      2024       2023  
    Standardized measure of future net cash flows, discounted at 10% ($ M)   $608,239       $626,131  
    Add: PV of future income tax, discounted at 10% ($ M)   $127,526       $130,882  
    PV-10 ($ M)   $735,765       $757,013  
                   

    The MIL Network –

    March 6, 2025
  • MIL-OSI: Micron Appoints Mark Liu and Christie Simons to Board of Directors

    Source: GlobeNewswire (MIL-OSI)

    BOISE, Idaho, March 05, 2025 (GLOBE NEWSWIRE) — Micron Technology Inc. (Nasdaq: MU) today announced it has appointed two experienced business leaders, Mark Liu and Christie Simons, to its board of directors.

    Liu spent over 30 years with Taiwan Semiconductor Manufacturing Company (TSMC), where he held increasingly important leadership positions, including senior vice president (2004-2012), co-chief operations officer (2012-2013), president and co-CEO (2013-2018), and executive chairman (2018-2024). Under his leadership, TSMC became the world’s largest semiconductor foundry. Currently, he is the founder and chairman of J&M Copper Beech Ventures, a multi-strategy investment fund. Liu began his career at Intel Corporation as part of the company’s development of its 32-bit microprocessor technology. He then moved to AT&T Bell Laboratory where he conducted fundamental high-speed electronics research. Liu’s other board commitments include the University of California, Berkeley Engineering Advisory Board. He holds a bachelor’s degree in electrical engineering from National Taiwan University, and master’s and Ph.D. degrees in electrical engineering and computer science from the University of California, Berkeley.

    “Mark is a visionary leader with deep technical expertise and business acumen. He has decades of experience leading one of the world’s most advanced and sophisticated semiconductor companies, with fab operations at the largest scale,” said Micron Chairman, President and CEO Sanjay Mehrotra. “His experience will help guide Micron as we scale our business to address the growing opportunities unleashed by AI — from the data center to the edge.”

    Simons is a senior audit and assurance partner of Deloitte & Touche LLP. She is retiring from the company in May with nearly 30 years of experience serving technology clients worldwide. She has held several significant leadership roles at Deloitte while leading teams to address clients’ most challenging problems, including global equity and debt offerings and enterprise-wide digital transformations. Simons recently led Deloitte’s Global Semiconductor Center of Excellence, integrating the organization’s multifaceted capabilities to serve global semiconductor clients across consulting, advisory, tax, and assurance. She also recently served as the U.S. Technology, Media, and Telecommunications industry leader for Deloitte’s audit and assurance practice. Simons holds a bachelor’s degree in international business and finance from the Leeds School of Business at the University of Colorado, Boulder, is a Certified Public Accountant in California, and is a member of the American Institute of CPAs.

    “Christie’s extensive experience in global technology and finance will provide invaluable insights as we continue to optimize Micron’s business to focus on innovation and growth,” said Mehrotra. “Her specific experience with the semiconductor industry will be a great asset as our board continues to shape Micron’s strategy to address the opportunities ahead.”

    “I am very pleased to welcome Mark and Christie to the Micron board of directors,” said Lynn Dugle, Micron’s lead independent director. “Mark’s executive experience with the world’s largest semiconductor foundry and Christie’s work delivering an array of services to global semiconductor companies bring additional strength to our board. We look forward to their contributions as we continue to position Micron for long-term success.”

    About Micron Technology, Inc.
    We are an industry leader in innovative memory and storage solutions transforming how the world uses information to enrich life for all. With a relentless focus on our customers, technology leadership, and manufacturing and operational excellence, Micron delivers a rich portfolio of high-performance DRAM, NAND and NOR memory and storage products through our Micron® and Crucial® brands. Every day, the innovations that our people create fuel the data economy, enabling advances in artificial intelligence (AI) and compute-intensive applications that unleash opportunities — from the data center to the intelligent edge and across the client and mobile user experience. To learn more about Micron Technology, Inc. (Nasdaq: MU), visit micron.com.

    © 2025 Micron Technology, Inc. All rights reserved. Information, products, and/or specifications are subject to change without notice. Micron, the Micron logo, and all other Micron trademarks are the property of Micron Technology, Inc. All other trademarks are the property of their respective owners.

    Micron Media Relations Contact
    Mark Plungy
    Micron Technology, Inc.
    +1 (408) 203-2910
    mplungy@micron.com

    Micron Investor Relations Contact
    Satya Kumar
    Micron Technology, Inc.
    +1 (408) 450-6199
    satyakumar@micron.com

    The MIL Network –

    March 6, 2025
  • MIL-OSI: Zscaler Reports Second Quarter Fiscal 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Second Quarter Highlights

    • Revenue grows 23% year-over-year to $647.9 million
    • Calculated billings grows 18% year-over-year to $742.7 million
    • Deferred revenue grows 25% year-over-year to $1,878.5 million
    • GAAP net loss of $7.7 million compared to GAAP net loss of $28.5 million on a year-over-year basis
    • Non-GAAP net income of $127.1 million compared to non-GAAP net income of $99.4 million on a year-over-year basis

    SAN JOSE, Calif., March 05, 2025 (GLOBE NEWSWIRE) — Zscaler, Inc. (Nasdaq: ZS), the leader in cloud security, today announced financial results for its second quarter of fiscal year 2025, ended January 31, 2025.

    “Growing adoption of Zero Trust and AI is driving strong demand for our platform, resulting in yet another strong quarter that exceeded our guidance on both top and bottom line. We are leading the industry towards Zero Trust Everywhere by transforming security from legacy appliance-based to a Zero Trust architecture,” said Jay Chaudhry, Chairman and CEO of Zscaler. “By combining AI with Zero Trust, we are delivering several key innovations to secure our customers’ use of AI applications, creating new avenues of growth.”

    Second Quarter Fiscal 2025 Financial Highlights

    • Revenue: $647.9 million, an increase of 23% year-over-year.
    • Income (loss) from operations: GAAP loss from operations was $40.1 million, or 6% of revenue, compared to $45.5 million, or 9% of revenue, in the second quarter of fiscal 2024. Non-GAAP income from operations was $140.5 million, or 22% of revenue, compared to $103.2 million, or 20% of revenue, in the second quarter of fiscal 2024.
    • Net income (loss): GAAP net loss was $7.7 million, compared to $28.5 million in the second quarter of fiscal 2024. Non-GAAP net income was $127.1 million, compared to $99.4 million in the second quarter of fiscal 2024.
    • Net income (loss) per share, diluted: GAAP net loss per share was $0.05, compared to $0.19 in the second quarter of fiscal 2024. Non-GAAP net income per share was $0.78, compared to $0.63 in the second quarter of fiscal 2024.
    • Cash flows: Cash provided by operations was $179.4 million, or 27% of revenue, compared to $142.1 million, or 27% of revenue, in the second quarter of fiscal 2024. Free cash flow was $143.4 million, or 22% of revenue, compared to $100.8 million, or 19% of revenue, in the second quarter of fiscal 2024.
    • Deferred revenue: $1,878.5 million as of January 31, 2025, an increase of 25% year-over-year.
    • Cash, cash equivalents and short-term investments: $2,880.2 million as of January 31, 2025, an increase of $470.6 million from July 31, 2024.

    Recent Business Highlights

    • Introduced the industry’s first Zero Trust Segmentation solution for branches and cloud environments. The new solution improves customers’ security posture by preventing lateral movement from ransomware attacks, while cutting firewall and infrastructure spend in half.
    • Started offering the Zero Trust Network Access (ZTNA) service natively integrated within RISE with SAP. Zscaler Private Access™ (ZPA™) for SAP helps enable SAP customers with on-premises ERP workloads to simplify and de-risk their cloud migration, without the complexity and risk associated with traditional VPNs.
    • Appointed Phil Tee as EVP of AI Innovations. Tee previously co-founded an enterprise AI-driven provider of intelligent monitoring solutions for DevOps and ITOps.
    • Achieved FedRAMP authorization for Zscaler Zero Trust Browser. The authorization assures agencies of compliance with rigorous security standards, facilitating cloud adoption and streamlining the procurement process.
    • Announced that Nokia, a multinational technology leader, is migrating from its traditional firewall-based security model to the Zscaler Zero Trust Exchange to enhance its security, improve operational efficiency, and strengthen cloud capabilities.

    Change in Non-GAAP Measures Presentation

    Effective August 1, 2024, the beginning of our fiscal year ending July 31, 2025, we are using a long-term projected non-GAAP tax rate of 23% for the purpose of determining our non-GAAP net income and non-GAAP net income per share to provide better consistency across interim reporting periods in fiscal 2025 and beyond. Given the significant growth of our business and non-GAAP operating income, we believe this change is necessary to better reflect the performance of our business. We will continue to assess the appropriate non-GAAP tax rate on a regular basis, which could be subject to changes for a variety of reasons, including the rapidly evolving global tax environment, significant changes in our geographic earnings mix, or other changes to our strategy or business operations. Prior period amounts have been recast to reflect this change.

    Financial Outlook

    For the third quarter of fiscal 2025, we expect:

    • Revenue of $665 million to $667 million
    • Non-GAAP income from operations of $140 million to $142 million
    • Non-GAAP net income per share of approximately $0.75 to $0.76, assuming approximately 163 million fully diluted shares outstanding and a non-GAAP tax rate of 23%

    For the full year of fiscal 2025, we expect:

    • Revenue of approximately $2.640 billion to $2.654 billion
    • Calculated billings of $3.153 billion to $3.168 billion
    • Non-GAAP income from operations of $562 million to $572 million
    • Non-GAAP net income per share of $3.04 to $3.09, assuming approximately 163.5 million fully diluted shares outstanding and a non-GAAP tax rate of 23%

    These statements are forward-looking and actual results may differ materially. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

    Guidance for non-GAAP income from operations excludes stock-based compensation expense and related employer payroll taxes, amortization of debt issuance costs, and amortization expense of acquired intangible assets. We have not reconciled our expectations of non-GAAP income from operations and non-GAAP net income per share to their most directly comparable GAAP measures because certain items are out of our control or cannot be reasonably predicted. For those reasons, we are also unable to address the probable significance of the unavailable information, the variability of which may have a significant impact on future results. Accordingly, a reconciliation for the guidance for non-GAAP income from operations and non-GAAP net income per share is not available without unreasonable effort.

    For further information regarding why we believe that these non-GAAP measures provide useful information to investors, the specific manner in which management uses these measures, and some of the limitations associated with the use of these measures, please refer to the “Explanation of Non-GAAP Financial Measures” section of this press release.

    Conference Call and Webcast Information

    Zscaler will host a conference call for analysts and investors to discuss its second quarter of fiscal 2025 and outlook for its third quarter of fiscal 2025 and full year fiscal 2025 today at 1:30 p.m. Pacific time (4:30 p.m. Eastern time).

    Date: Wednesday, March 5, 2025
    Time: 1:30 p.m. PT
    Webcast: https://ir.zscaler.com 
    Dial-in: To join by phone, register at the following link: (https://register.vevent.com/register/BI81201a44d72f48cab018ea30aa79b03b). After registering, you will be provided with a dial-in number and a personal PIN that you will need to join the call.
       

    Upcoming Conferences

    Third quarter of fiscal 2025 investor conference participation schedule:

    • Morgan Stanley Technology, Media and Telecom Conference in San Francisco
      Thursday, March 6, 2025
    • Susquehanna Travel, Tech + Gambling Forum (Virtual)
      Friday, March 7, 2025
    • Loop Capital Markets 2025 Investor Conference (Virtual)
      Monday, March 10, 2025
    • Stifel Technology 2025 Technology One-on-One Conference in New York City
      Tuesday, March 11, 2025
    • Cantor Global Technology Conference in New York City
      Wednesday, March 12, 2025

    Sessions which offer a webcast will be available on the Investor Relations section of the Zscaler website at https://ir.zscaler.com/

    Forward-Looking Statements

    This press release contains forward-looking statements that involve risks and uncertainties, including, but not limited to, statements regarding our future financial and operating performance, including our financial outlook for the third quarter of fiscal 2025 and full year fiscal 2025. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including but not limited to: macroeconomic influences and instability, geopolitical events, operations and financial results and the economy in general; risks related to the use of AI in our platform; our ability to identify and effectively implement the necessary changes to address execution challenges; risks associated with managing our rapid growth, including fluctuations from period to period; our limited experience with new products and subscriptions and support introductions and the risks associated with new products and subscription and support offerings, including the discovery of software bugs; our ability to attract and retain new customers; the failure to timely develop and achieve market acceptance of new products and subscriptions as well as existing products and subscription and support; rapidly evolving technological developments in the market for network security products and subscription and support offerings and our ability to remain competitive; length of sales cycles; useful lives of our assets and other estimates; and general market, political, economic and business conditions.

    Additional risks and uncertainties that could affect our financial results are included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” set forth from time to time in our filings and reports with the Securities and Exchange Commission (“SEC”), including our Quarterly Report on Form 10-Q for the fiscal quarter ended October 31, 2024 filed on December 5, 2024 and our Annual Report on Form 10-K for the fiscal year ended July 31, 2024 filed on September 12, 2024, as well as future filings and reports by us, copies of which are available on our website at ir.zscaler.com and on the SEC’s website at www.sec.gov. You should not rely on these forward-looking statements, as actual outcomes and results may differ materially from those contemplated by these forward-looking statements as a result of such risks and uncertainties. Additional information will also be set forth in other filings that we make with the SEC from time to time. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

    Use of Non-GAAP Financial Information

    We believe that the presentation of non-GAAP financial information provides important supplemental information to management and investors regarding financial and business trends relating to our financial condition and results of operations. For further information regarding why we believe that these non-GAAP measures provide useful information to investors, the specific manner in which management uses these measures, and some of the limitations associated with the use of these measures, please refer to the “Explanation of Non-GAAP Financial Measures” section of this press release.

    About Zscaler

    Zscaler (Nasdaq: ZS) accelerates digital transformation so customers can be more agile, efficient, resilient, and secure. The Zscaler Zero Trust Exchange™ platform protects thousands of customers from cyberattacks and data loss by securely connecting users, devices, and applications in any location. Distributed across more than 160 data centers globally, the SASE-based Zero Trust Exchange is the world’s largest in-line cloud security platform.

    Zscaler™ and the other trademarks listed at https://www.zscaler.com/legal/trademarks are either (i) registered trademarks or service marks or (ii) trademarks or service marks of Zscaler, Inc. in the United States and/or other countries. Any other trademarks are the properties of their respective owners.

    Investor Relations Contacts

    Ashwin Kesireddy
    VP, Investor Relations and Strategic Finance
    (415) 798-1475
    ir@zscaler.com

    Natalia Wodecki
    Media Relations Contact
    press@zscaler.com

     
    ZSCALER, INC.
    Condensed Consolidated Statements of Operations
    (in thousands, except per share amounts)
    (unaudited)
                   
      Three Months Ended   Six Months Ended
      January 31,   January 31,
      2025   2024   2025   2024
    Revenue $ 647,900     $ 524,999     $ 1,275,855     $ 1,021,702  
    Cost of revenue(1) (2)   148,498       117,199       289,960       228,593  
    Gross profit   499,402       407,800       985,895       793,109  
    Operating expenses:              
    Sales and marketing(1) (2)   307,872       276,481       613,959       543,592  
    Research and development(1) (2)   170,860       122,181       325,114       235,720  
    General and administrative(1)   60,810       54,595       117,629       105,311  
    Total operating expenses   539,542       453,257       1,056,702       884,623  
    Loss from operations   (40,140 )     (45,457 )     (70,807 )     (91,514 )
    Interest income   30,878       28,385       60,926       54,327  
    Interest expense(3)   (2,339 )     (3,605 )     (5,482 )     (6,764 )
    Other income (expense), net   (4,936 )     172       (5,588 )     (1,040 )
    Loss before income taxes   (16,537 )     (20,505 )     (20,951 )     (44,991 )
    Provision for (benefit from) for income taxes(4)   (8,813 )     7,964       (1,176 )     16,961  
    Net loss $ (7,724 )   $ (28,469 )   $ (19,775 )   $ (61,952 )
    Net loss per share, basic and diluted $ (0.05 )   $ (0.19 )   $ (0.13 )   $ (0.42 )
    Weighted-average shares used in computing net loss per share, basic and diluted   153,672       148,951       153,114       148,287  
    (1) Includes stock-based compensation expense and related payroll taxes as follows:
    Cost of revenue $ 17,619     $ 13,434     $ 33,412     $ 26,389  
    Sales and marketing   69,979       65,855       134,845       124,523  
    Research and development   65,896       44,120       124,761       85,163  
    General and administrative   22,862       22,127       43,912       42,190  
    Total $ 176,356     $ 145,536     $ 336,930     $ 278,265  
    (2) Includes amortization expense of acquired intangible assets as follows:
    Cost of revenue $ 3,815     $ 2,717     $ 7,490     $ 5,434  
    Sales and marketing   425       226       850       452  
    Research and development   5       140       145       233  
    Total $ 4,245     $ 3,083     $ 8,485     $ 6,119  
    (3) Includes amortization of debt issuance costs $ 982     $ 978     $ 1,963     $ 1,955  
    (4) Benefit from a release of valuation allowance (*) $ 17,188     $ —     $ 17,188     $ —  
                                   

    (*) During the three months ended January 31, 2025, we recognized a tax benefit of $17.2 million attributable to the release of the valuation allowance on United Kingdom (U.K.) deferred tax assets.

     
    ZSCALER, INC.
    Condensed Consolidated Balance Sheets
    (in thousands)
    (unaudited)
      January 31,   July 31,
      2025   2024
    Assets      
    Current assets:      
    Cash and cash equivalents $ 1,758,506     $ 1,423,080  
    Short-term investments   1,121,734       986,574  
    Accounts receivable, net   514,314       736,529  
    Deferred contract acquisition costs   156,079       148,873  
    Prepaid expenses and other current assets   114,573       101,561  
    Total current assets   3,665,206       3,396,617  
    Property and equipment, net   422,315       383,121  
    Operating lease right-of-use assets   83,703       89,758  
    Deferred contract acquisition costs, noncurrent   284,286       296,525  
    Acquired intangible assets, net   55,658       63,835  
    Goodwill   417,730       417,029  
    Other noncurrent assets   77,070       58,083  
    Total assets $ 5,005,968     $ 4,704,968  
           
    Liabilities and Stockholders’ Equity      
    Current liabilities:      
    Accounts payable $ 24,600     $ 23,309  
    Accrued expenses and other current liabilities   90,626       91,708  
    Accrued compensation   140,430       160,810  
    Deferred revenue   1,595,780       1,643,919  
    Convertible senior notes   1,147,513       1,142,275  
    Operating lease liabilities   49,917       50,866  
    Total current liabilities   3,048,866       3,112,887  
    Deferred revenue, noncurrent   282,725       251,055  
    Operating lease liabilities, noncurrent   40,912       44,824  
    Other noncurrent liabilities   26,119       22,100  
    Total liabilities   3,398,622       3,430,866  
    Stockholders’ Equity      
    Common stock   155       152  
    Additional paid-in capital   2,797,350       2,426,819  
    Accumulated other comprehensive loss   (22,304 )     (4,789 )
    Accumulated deficit   (1,167,855 )     (1,148,080 )
    Total stockholders’ equity   1,607,346       1,274,102  
    Total liabilities and stockholders’ equity $ 5,005,968     $ 4,704,968  
                   
     
    ZSCALER, INC.
    Condensed Consolidated Statements of Cash Flows
    (in thousands)
    (unaudited)
      Six Months Ended
      January 31,
      2025   2024
    Cash Flows from Operating Activities      
    Net loss $ (19,775 )   $ (61,952 )
    Adjustments to reconcile net loss to cash provided by operating activities:      
    Depreciation and amortization expense   45,911       29,361  
    Amortization expense of acquired intangible assets   8,485       6,119  
    Amortization of deferred contract acquisition costs   79,191       61,504  
    Amortization of debt issuance costs   1,963       1,955  
    Non-cash operating lease costs   31,565       21,633  
    Stock-based compensation expense   329,295       269,570  
    Accretion of investments purchased at a discount   (10,110 )     (9,582 )
    Unrealized losses on hedging transactions   3,036       2,841  
    Deferred income taxes   (17,359 )     (1,437 )
    Other   1,303       1,403  
    Changes in operating assets and liabilities, net of effects of business acquisitions:      
    Accounts receivable   222,043       102,374  
    Deferred contract acquisition costs   (74,158 )     (67,744 )
    Prepaid expenses, other current and noncurrent assets   (12,144 )     2,660  
    Accounts payable   98       (2,412 )
    Accrued expenses, other current and noncurrent liabilities   (11,481 )     6,020  
    Accrued compensation   (20,380 )     562  
    Deferred revenue   (16,469 )     62,477  
    Operating lease liabilities   (30,246 )     (22,477 )
    Net cash provided by operating activities   510,768       402,875  
    Cash Flows from Investing Activities      
    Purchases of property, equipment and other assets   (32,043 )     (59,553 )
    Capitalized internal-use software   (43,416 )     (17,816 )
    Payments for business acquisitions, net of cash acquired   (834 )     (4,377 )
    Purchase of strategic investments   (786 )     (2,000 )
    Purchases of short-term investments   (729,066 )     (761,796 )
    Proceeds from maturities of short-term investments   605,003       594,687  
    Proceeds from sale of short-term investments   —       2,105  
    Net cash used in investing activities   (201,142 )     (248,750 )
    Cash Flows from Financing Activities      
    Proceeds from issuance of common stock upon exercise of stock options   3,456       3,848  
    Proceeds from issuance of common stock under the employee stock purchase plan   22,344       18,407  
    Net cash provided by financing activities   25,800       22,255  
    Net increase in cash and cash equivalents   335,426       176,380  
    Cash and cash equivalents at beginning of period   1,423,080       1,262,206  
    Cash and cash equivalents at end of period $ 1,758,506     $ 1,438,586  
                   
     
    ZSCALER, INC.
    Reconciliation of GAAP to Non-GAAP Financial Measures
    (in thousands, except percentages)
    (unaudited)
                   
      Three Months Ended   Six Months Ended
      January 31,   January 31,
      2025   2024   2025   2024
                   
    Revenue $ 647,900     $ 524,999     $ 1,275,855     $ 1,021,702  
                   
    Non-GAAP Gross Profit and Non-GAAP Gross Margin              
    GAAP gross profit $ 499,402     $ 407,800     $ 985,895     $ 793,109  
    Add: Stock-based compensation expense and related payroll taxes   17,619       13,434       33,412       26,389  
    Add: Amortization expense of acquired intangible assets   3,815       2,717       7,490       5,434  
    Non-GAAP gross profit $ 520,836     $ 423,951     $ 1,026,797     $ 824,932  
    GAAP gross margin   77 %     78 %     77 %     78 %
    Non-GAAP gross margin   80 %     81 %     80 %     81 %
                   
    Non-GAAP Income from Operations and Non-GAAP Operating Margin              
    GAAP loss from operations $ (40,140 )   $ (45,457 )   $ (70,807 )   $ (91,514 )
    Add: Stock-based compensation expense and related payroll taxes   176,356       145,536       336,930       278,265  
    Add: Amortization expense of acquired intangible assets   4,245       3,083       8,485       6,119  
    Non-GAAP income from operations $ 140,461     $ 103,162     $ 274,608     $ 192,870  
    GAAP operating margin (6 )%   (9 )%   (6 )%   (9 )%
    Non-GAAP operating margin   22 %     20 %     22 %     19 %
                                   
     
    ZSCALER, INC.
    Reconciliation of GAAP to Non-GAAP Financial Measures
    (in thousands, except per share amounts)
    (unaudited)
                   
      Three Months Ended   Six Months Ended
      January 31,   January 31,
      2025   2024   2025   2024
    Non-GAAP Net Income per Share, Diluted              
    GAAP net loss $ (7,724 )   $ (28,469 )   $ (19,775 )   $ (61,952 )
    Add: GAAP provision for (benefit from) income taxes   (8,813 )     7,964       (1,176 )     16,961  
    GAAP loss before income taxes   (16,537 )     (20,505 )     (20,951 )     (44,991 )
    Add:              
    Stock-based compensation expense and related payroll taxes   176,356       145,536       336,930       278,265  
    Amortization expense of acquired intangible assets   4,245       3,083       8,485       6,119  
    Amortization of debt issuance costs   982       978       1,963       1,955  
    Non-GAAP net income before income taxes   165,046       129,092       326,427       241,348  
    Non-GAAP provision for income taxes(1)   37,965       29,691       75,083       55,510  
    Non-GAAP net income $ 127,081     $ 99,401     $ 251,344     $ 185,838  
                   
    GAAP provision for (benefit from) income taxes $ (8,813 )   $ 7,964     $ (1,176 )   $ 16,961  
    Add: Income tax and other tax adjustments(2)   46,778       21,727       76,259       38,549  
    Non-GAAP provision for income taxes(1) $ 37,965     $ 29,691     $ 75,083     $ 55,510  
    Non-GAAP effective tax rate(1)   23 %     23 %     23 %     23 %
                   
    Non-GAAP net income   127,081       99,401       251,344       185,838  
    Add: Non-GAAP interest expense, net of tax related to the convertible senior notes   276       276       552       552  
    Numerator used in computing non-GAAP net income per share, diluted $ 127,357     $ 99,677     $ 251,896     $ 186,390  
                   
    GAAP net loss per share, diluted $ (0.05 )   $ (0.19 )   $ (0.13 )   $ (0.42 )
    Stock-based compensation expense and related payroll taxes   1.09       0.91       2.08       1.75  
    Amortization expense of acquired intangible assets   0.03       0.02       0.05       0.04  
    Amortization of debt issuance costs   0.01       0.01       0.01       0.01  
    Income tax and other tax adjustments(2)   (0.29 )     (0.14 )     (0.47 )     (0.24 )
    Non-GAAP interest expense related to the convertible senior notes   —       —       —       —  
    Adjustment to total fully diluted earnings per share(3)   (0.01 )     0.02       0.01       0.03  
    Non-GAAP net income per share, diluted $ 0.78     $ 0.63     $ 1.55     $ 1.17  
                   
    Weighted-average shares used in computing GAAP net loss per share, diluted   153,672       148,951       153,114       148,287  
    Add: Outstanding potentially dilutive equity incentive awards   2,988       4,670       2,848       4,226  
    Add: Convertible senior notes   7,626       7,626       7,626       7,626  
    Less: Antidilutive impact of capped call transactions(4)   (1,769 )     (2,093 )     (1,505 )     (1,254 )
    Weighted-average shares used in computing non-GAAP net income per share, diluted   162,517       159,154       162,083       158,885  

    ___________

    (1) Effective August 1, 2024, the beginning of our fiscal year ending July 31, 2025, we are using a long-term projected non-GAAP tax rate of 23% for the purpose of determining our non-GAAP net income and non-GAAP net income per share to provide better consistency across interim reporting periods in fiscal 2025 and beyond. Given the significant growth of our business and non-GAAP operating income, we believe this change is necessary to better reflect the performance of our business. We will continue to assess the appropriate non-GAAP tax rate on a regular basis, which could be subject to changes for a variety of reasons, including the rapidly evolving global tax environment, significant changes in our geographic earnings mix, or other changes to our strategy or business operations. Prior period amounts have been recast to reflect this change.

    (2) Consists of income tax adjustments related to our long-term non-GAAP effective tax rate of 23%. In the three months ended January 31, 2025, the adjustments exclude the tax benefit of $17.2 million attributable to the release of the valuation allowance on U.K. deferred tax assets.

    (3) The sum of the fully diluted earnings per share impact of individual reconciling items may not total to fully diluted non-GAAP net income per share due to the weighted-average shares used in computing the GAAP net loss per share differs from the weighted-average shares used in computing the non-GAAP net income per share, and due to rounding of the individual reconciling items. The GAAP net loss per share calculation uses a lower share count as it excludes potentially dilutive shares, which are included in calculating the non-GAAP net income per share.

    (4) We exclude the in-the-money portion of the convertible senior notes for non-GAAP weighted-average diluted shares as they are covered by our capped call transactions. Our outstanding capped call transactions are antidilutive under GAAP but are expected to mitigate the dilutive effect of the convertible senior notes and therefore are included in the calculation of non-GAAP diluted shares outstanding. The capped calls have an antidilutive impact when the average stock price of our common stock in a given period is higher than their exercise price.

     
    ZSCALER, INC.
    Reconciliation of GAAP to Non-GAAP Financial Measures
    (in thousands, except percentages)
    (unaudited)
                   
      Three Months Ended   Six Months Ended
      January 31,   January 31,
      2025   2024   2025   2024
    Calculated Billings              
    Revenue $ 647,900     $ 524,999     $ 1,275,855     $ 1,021,702  
    Add: Total deferred revenue, end of period   1,878,505       1,502,175       1,878,505       1,502,175  
    Less: Total deferred revenue, beginning of period   (1,783,720 )     (1,399,544 )     (1,894,974 )     (1,439,676 )
    Calculated billings $ 742,685     $ 627,630     $ 1,259,386     $ 1,084,201  
                   
    Free Cash Flow              
    Net cash provided by operating activities $ 179,433     $ 142,069     $ 510,768     $ 402,875  
    Less: Purchases of property, equipment and other assets   (15,018 )     (30,894 )     (32,043 )     (59,553 )
    Less: Capitalized internal-use software   (20,987 )     (10,387 )     (43,416 )     (17,816 )
    Free cash flow $ 143,428     $ 100,788     $ 435,309     $ 325,506  
                   
    Free Cash Flow Margin              
    Net cash provided by operating activities, as a percentage of revenue   27 %     27 %     40 %     39 %
    Less: Purchases of property, equipment and other assets, as a percentage of revenue (2 )%   (6 )%   (3 )%   (6 )%
    Less: Capitalized internal-use software, as a percentage of revenue (3 )%   (2 )%   (3 )%   (2 )%
    Free cash flow margin   22 %     19 %     34 %     32 %
                                   
     
    ZSCALER, INC.
    Explanation of Non-GAAP Financial Measures
     

    In addition to our results determined in accordance with generally accepted accounting principles in the United States of America (“GAAP”), we believe the following non-GAAP measures are useful in evaluating our operating performance. We use the following non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, as it has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In particular, free cash flow is not a substitute for cash provided by operating activities. Additionally, the utility of free cash flow as a measure of our liquidity is further limited as it does not represent the total increase or decrease in our cash balance for a given period. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. A reconciliation of our historical non-GAAP financial measures to their most directly comparable financial measures stated in accordance with GAAP has been included in this press release. Investors are cautioned that there are a number of limitations associated with the use of non-GAAP financial measures and key metrics as analytical tools. Investors are encouraged to review these reconciliations, and not to rely on any single financial measure to evaluate our business.

    Expenses Excluded from Non-GAAP Measures

    Stock-based compensation expense is excluded primarily because it is a non-cash expense that management believes is not reflective of our ongoing operational performance. Employer payroll taxes related to stock-based compensation, which is a cash expense, are excluded because these are tied to the timing and size of the exercise or vesting of the underlying equity incentive awards and the price of our common stock at the time of vesting or exercise, which may vary from period to period independent of the operating performance of our business. Amortization expense of acquired intangible assets and amortization of debt issuance costs from the convertible senior notes are excluded because these are non-cash expenses and are not reflective of our ongoing operational performance.

    Effective August 1, 2024, the beginning of our fiscal year ending July 31, 2025, we are using a long-term projected non-GAAP tax rate of 23% for the purpose of determining our non-GAAP net income and non-GAAP net income per share to provide better consistency across interim reporting periods. Given the significant growth of our business and non-GAAP operating income, we believe this change is necessary to better reflect the performance of our business. We will continue to assess the appropriate non-GAAP tax rate on a regular basis, which could be subject to changes for a variety of reasons, including the rapidly evolving global tax environment, significant changes in our geographic earnings mix, or other changes to our strategy or business operations. Prior period amounts have been recast to reflect this change.

    Non-GAAP Financial Measures

    Non-GAAP Gross Profit and Non-GAAP Gross Margin. We define non-GAAP gross profit as GAAP gross profit excluding stock-based compensation expense and related employer payroll taxes and amortization expense of acquired intangible assets. We define non-GAAP gross margin as non-GAAP gross profit as a percentage of revenue.

    Non-GAAP Income from Operations and Non-GAAP Operating Margin. We define non-GAAP income from operations as GAAP loss from operations excluding stock-based compensation expense and related employer payroll taxes and amortization expense of acquired intangible assets. We define non-GAAP operating margin as non-GAAP income from operations as a percentage of revenue.

    Non-GAAP Net Income per Share, Diluted. We define non-GAAP net income as GAAP net loss excluding stock-based compensation expense and related employer payroll taxes, amortization expense of acquired intangible assets, amortization of debt issuance costs, and the non-GAAP provision for income taxes adjustment. We define non-GAAP net income per share, diluted, as non-GAAP net income plus the non-GAAP interest expense related to the convertible senior notes divided by the weighted-average diluted shares outstanding, which includes the effect of potentially diluted common stock equivalents outstanding during the period and the anti-dilutive impact of the capped call transactions entered into in connection with the convertible senior notes.

    Calculated Billings. We define calculated billings as revenue plus the change in deferred revenue in a period. Calculated billings in any particular period aims to reflect amounts invoiced for subscriptions to access our cloud platform, together with related support services for our new and existing customers. We typically invoice our customers annually in advance, and to a lesser extent quarterly in advance, monthly in advance or multi-year in advance.

    Free Cash Flow and Free Cash Flow Margin. We define free cash flow as net cash provided by operating activities less purchases of property, equipment and other assets and capitalized internal-use software. We define free cash flow margin as free cash flow divided by revenue. We believe that free cash flow and free cash flow margin are useful indicators of liquidity that provide information to management and investors about the amount of cash generated from our operations that, after the investments in property, equipment and other assets and capitalized internal-use software, can be used for strategic initiatives.

    The MIL Network –

    March 6, 2025
  • MIL-OSI: Silvaco Reports Fourth Quarter and Full Year 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Achieved record gross bookings of $65.8 million and revenue of $59.7 million in full-year 2024

    Signed 46 new customers in 2024 and expanded relationship with existing customers across key markets including power, automotive, memory, foundry, and display

    Expanded Product Portfolio with the Acquisition of Cadence’s Process Proximity Compensation Product Line

    SANTA CLARA, Calif., March 05, 2025 (GLOBE NEWSWIRE) — Silvaco Group, Inc. (Nasdaq: SVCO) (“Silvaco” or the “Company”), a provider of TCAD, EDA software, and SIP solutions that enable innovative semiconductor design and digital twin modeling through AI software and automation, today announced its fourth quarter and full year 2024 results.

    “We are proud to close out the year with strong momentum and growing customer traction, including 46 new customer wins in 2024 and multiple bookings on our AI based, flagship FTCO platform,” said Dr. Babak Taheri, Silvaco’s Chief Executive Officer. Dr. Taheri continued, “Our first acquisition as a public company marks a significant milestone in executing our M&A strategy for talent, technology and expanding through inorganic growth. With a continued focus on innovation and execution, we are well-positioned to build on this success and drive further growth in 2025 for our EDA and TCAD product lines.”

    Fourth Quarter 2024 and Recent Business Highlights

    • Acquired 13 new customers across key markets including Photonics, Power, Automotive, Memory, and Foundry, which represented approximately 9% of gross bookings for the quarter.
    • Announced a partnership with Micon Global to expand Silvaco’s reach across the EMEA market, leveraging Micon’s expertise to deliver cutting-edge TCAD, EDA, and SIP solutions to new customers.
    • Joined the SMART USA Institute under the CHIPS Manufacturing USA program to advance digital twin technologies in semiconductor manufacturing, reinforcing Silvaco’s leadership in innovation. We received our first booking from this program.
    • Received a $5.0 million follow-on order for FTCO™ digital-twin modeling product from a strategic memory customer. This order extends the footprint of our FTCO™ product line and further validates our strategic focus on this unique technology.
    • Achieved ISO 9001 certification, underscoring Silvaco’s commitment to quality and continuous improvement across its TCAD, EDA, and SIP product portfolio.
    • On March 4, 2025, Silvaco closed the acquisition of the Process Proximity Compensation (PPC) product line from Cadence Design Systems, Inc. The addition, an optical proximity correction suite of tools, is highly complementary to Silvaco’s EDA and TCAD tool suites.

    Full Year 2024 Business Highlights

    • Acquired 46 new customers across key markets including Power, Automotive, Government/Mil-Aero, Photonics, IOT, 5G/6G, Memory, and Foundry, which represented approximately 10% of gross bookings for the year.
    • Expanded Victory TCAD and Digital Twin Modeling Platform to Planar CMOS, FinFET and Advanced CMOS Technologies which is a necessary step to enable FTCO for Advanced Process.
    • Silvaco Announced that the Ninth Circuit Court of Appeals affirmed the dismissal of all claims against Silvaco brought by Aldini AG.
    • Silvaco was added to the Russell 2000®, Russell 3000®, and Russell Microcap® indexes in September 2024.
    • Completed initial public offering in May 2024, raising $106 million net of underwriters’ fees.

    Fourth Quarter 2024 Financial Results

    GAAP Financial Results

    • Revenue of $17.9 million, up 43% year-over-year and up 63% quarter-over-quarter.
      • TCAD revenue of $12.7 million, up 65% year-over-year.
      • EDA revenue of $4.2 million, up 57% year-over-year.
      • SIP revenue of $0.9 million, down 57% year-over-year.
    • GAAP gross profit and GAAP gross margin were $15.4 million and 86%, respectively, which includes the impact of $194,000 stock-based compensation expense, $249,000 amortization of acquired intangible assets, and $80,000 payroll taxes from the RSU lockup release, up from $9.8 million and 79% in Q4 2023.
    • GAAP net income of $4.2 million, compared to a GAAP net loss of $2.2 million in Q4 2023.
    • GAAP basic and diluted net income per share of $0.14, compared to GAAP basic and diluted net loss per share of $(0.11) in Q4 2023.
    • As of December 31, 2024, cash and cash equivalents and marketable securities totaled $87.5 million.

    Key Operating Indicators and Non-GAAP Financial Results:

    • Gross bookings were $20.3 million, up 30% year-over-year.
    • As of December 31, 2024, the remaining performance obligation balance of $34.3 million, 46% of which is expected to be recognized as revenue in the next 12 months.
    • Non-GAAP gross profit and non-GAAP gross margin were $16.0 million and 89%, respectively, up from $9.8 million and 79% year-over-year.
    • Non-GAAP net income of $4.3 million, compared to Non-GAAP net loss of $(1.6) million in Q4 2023.
    • Non-GAAP diluted net income per share of $0.15, compared to Non-GAAP diluted net loss per share of $(0.08) in Q4 2023.

    Full Year 2024 Financial Results

    GAAP Financial Results

    • Revenue of $59.7 million, up 10% year-over-year.
      • TCAD revenue of $40.2 million, up 25% year-over-year.
      • EDA revenue of $14.6 million, up 4% year-over-year.
      • SIP revenue of $4.9 million, down 40% year-over-year.
    • GAAP gross profit and GAAP gross margin were $47.6 million and 80%, respectively, which includes the impact of $3.0 million stock-based compensation expense, $747,000 amortization of acquired intangible assets, and $80,000 payroll taxes from the RSU lockup release, up from $44.9 million and down from 83% in 2023.
    • GAAP net loss of $(39.4) million, compared to $(0.3) million in 2023.
    • GAAP basic and diluted net loss per share of $(1.53), compared to $(0.02) in 2023.

    Key Operating Indicators and Non-GAAP Financial Results:

    • Gross bookings were $65.8 million, up 13% year-over-year.
    • Non-GAAP gross profit and non-GAAP gross margin were $51.4 million and 86%, respectively, up from $44.9 million and 83% year over year.
    • Non-GAAP net income of $6.7 million, compared to $3.4 million in 2023.
    • Non-GAAP diluted net income per share of $0.25, compared to $0.17 in 2023.

    For a discussion of the non-GAAP metrics presented in this press release, as well as a reconciliation of non-GAAP metrics to the nearest comparable GAAP metric, see “Discussion of Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliation” in the accompanying tables below.

    Supplementary materials to this press release, including our fourth quarter 2024 financial results, can be found at https://investors.silvaco.com/financial-information/quarterly-results.

    First Quarter and Full Year 2025 Financial Outlook

    As of March 5, 2025, Silvaco is providing guidance for its first quarter of 2025 and its full-year 2025, which represents Silvaco’s current estimates on its operations and financial results. The financial information below represents forward-looking financial information and in some instances forward-looking, non-GAAP financial information, including estimates of non-GAAP gross margin, non-GAAP operating income (loss) and non-GAAP diluted net income (loss) per share. GAAP gross margin is the most comparable GAAP measure to non-GAAP gross margin, GAAP operating income (loss) is the most comparable GAAP measure to non-GAAP operating income (loss). GAAP diluted net income (loss) per share is the most comparable GAAP measure to non-GAAP diluted net income (loss) per share. Non-GAAP gross margin differs from GAAP gross margin in that it excludes items such as stock-based compensation expense, amortization of acquired intangible assets, and payroll tax from the IPO lock-up release. Non-GAAP operating income (loss) differs from GAAP operating income (loss) in that it excludes items such as acquisition-related estimated litigation claim and legal costs, stock-based compensation expense, amortization of acquired intangible assets, payroll tax from the IPO lock-up release, IPO preparation costs, and executive severance costs. Non-GAAP diluted net income (loss) per share differs from GAAP diluted net income (loss) per share in that it excludes certain costs, including IPO preparation costs, acquisition-related estimated litigation claim and legal costs, stock-based compensation expense, amortization of acquired intangible assets, payroll tax from the IPO lock-up release, executive severance costs, change in fair value of contingent consideration, foreign exchange (gain) loss, loss on debt extinguishment, and the income tax effect on non-GAAP items. Silvaco is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort. Therefore, Silvaco has not provided guidance for GAAP gross margin, GAAP operating income or GAAP diluted net income (loss) per share or a reconciliation of the forward-looking non-GAAP gross margin or non-GAAP operating income or non-GAAP diluted net income (loss) per share guidance to GAAP gross margin or GAAP operating income or GAAP diluted net income (loss) per share, respectively. However, it is important to note that these excluded items could be material to our results computed in accordance with GAAP in future periods.

    Based on current business trends and conditions, the Company expects for first quarter 2025 the following:

    • Gross bookings in the range of $16.0 million to $19.0 million, which would compare to $16.1 million in the first quarter of 2024.
    • Revenue in the range of $14.5 million to $17.0 million, which would compare to $15.9 million in the first quarter of 2024.
    • Non-GAAP gross margin in the range of 84% to 87%, which would compare to 88% in the first quarter of 2024.
    • Non-GAAP operating income in the range of ($1.0) million loss to $1.0 million income, compared to $3.3 million in the first quarter of 2024.
    • Non-GAAP diluted net income per share in the range of ($0.03) loss to $0.03, compared to $0.12 in the first quarter of 2024.

    For full year 2025, the Company expects:

    • Gross bookings in the range of $72.0 million to $79.0 million, which would represent a 9% to 20% increase from $65.8 million in 2024.
    • Revenue in the range of $66.0 million to $72.0 million, which would represent a 11% to 21% increase from $59.7 million in 2024.
    • Non-GAAP gross margin in the range of 84.0% to 89.0%, which would compare to 86% in 2024.
    • Non-GAAP operating income in the range of $2.0 million to $7.0 million, which would compare to $5.5 million in 2024.
    • Non-GAAP diluted net income per share in the range of $0.07 to $0.19, compared to $0.25 in 2024.

    Q4 2024 Conference Call Details

    A press release highlighting the Company’s results along with supplemental financial results will be available at https://investors.silvaco.com/ along with an earnings presentation to accompany management’s prepared remarks on the day of the conference call, after market close. An archived replay of the conference call will be available on this website for a limited time after the call. Participants who want to join the call and ask a question may register for the call here to receive the dial-in numbers and unique PIN.

    Date: Wednesday, March 5, 2025
    Time: 5:00 p.m. Eastern time
    Webcast: Here (live and replay)

    About Silvaco

    Silvaco is a provider of TCAD, EDA software, and SIP solutions that enable semiconductor design and digital twin modeling through AI software and innovation. Silvaco’s solutions are used for semiconductor and photonics processes, devices, and systems development across display, power devices, automotive, memory, high performance compute, foundries, photonics, internet of things, and 5G/6G mobile markets for complex SoC design. Silvaco is headquartered in Santa Clara, California, and has a global presence with offices located in North America, Europe, Brazil, China, Japan, Korea, Singapore, and Taiwan.

    Safe Harbor Statement

    This press release contains forward-looking statements based on Silvaco’s current expectations. The words “believe”, “estimate”, “expect”, “intend”, “anticipate”, “plan”, “project”, “will”, and similar phrases as they relate to Silvaco are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of Silvaco and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations.

    These forward-looking statements include but are not limited to, statements regarding our future operating results, financial position, and guidance, our business strategy and plans, our objectives for future operations, our development or delivery of new or enhanced products, and anticipated results of those products for our customers, our competitive positioning, projected costs, technological capabilities, and plans, and macroeconomic trends.

    A variety of risks and factors that are beyond our control could cause actual results to differ materially from those in the forward-looking statements including, without limitation, the following: (a) market conditions; (b) anticipated trends, challenges and growth in our business and the markets in which we operate; (c) our ability to appropriately respond to changing technologies on a timely and cost-effective basis; (d) the size and growth potential of the markets for our software solutions, and our ability to serve those markets; (e) our expectations regarding competition in our existing and new markets; (f) the level of demand in our customers’ end markets; (g) regulatory developments in the United States and foreign countries; (h) changes in trade policies, including the imposition of tariffs; (i) proposed new software solutions, services or developments; (j) our ability to attract and retain key management personnel; (k) our customer relationships and our ability to retain and expand our customer relationships; (l) our ability to diversify our customer base and develop relationships in new markets; (m) the strategies, prospects, plans, expectations, and objectives of management for future operations; (n) public health crises, pandemics, and epidemics and their effects on our business and our customers’ businesses; (o) the impact of the current conflicts between Ukraine and Russia and Israel and Hamas and the ongoing trade disputes among the United States and China on our business, financial condition or prospects, including extreme volatility in the global capital markets making debt or equity financing more difficult to obtain, more costly or more dilutive, delays and disruptions of the global supply chains and the business activities of our suppliers, distributors, customers and other business partners; (p) changes in general economic or business conditions or economic or demographic trends in the United States and foreign countries including changes in tariffs, interest rates and inflation; (q) our ability to raise additional capital; (r) our ability to accurately forecast demand for our software solutions; (s) our expectations regarding the outcome of any ongoing litigation; (t) our expectations regarding the period during which we qualify as an emerging growth company under the JOBS Act and as a smaller reporting company under the Exchange Act; (u) our expectations regarding our ability to obtain, maintain, protect and enforce intellectual property protection for our technology; (v) our status as a controlled company; (w) our use of the net proceeds from our initial public offering, and (x) our ability to successfully integrate, retain key personnel, and realize the anticipated benefits of the acquisition of Cadence’s PPC product line.

    It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. Accordingly, you should not rely on any of the forward-looking statements. Additional information relating to the uncertainty affecting the Silvaco’s business is contained in Silvaco’s filings with the Securities and Exchange Commission. These documents are available on the SEC Filings section of the Investor Relations section of Silvaco’s website at http://investors.silvaco.com/. These forward-looking statements represent Silvaco’s expectations as of the date of this press release. Subsequent events may cause these expectations to change, and Silvaco disclaims any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise.

    Discussion of Non-GAAP Financial Measures

    We use certain non-GAAP financial measures to supplement the performance measures in our consolidated financial statements, which are presented in accordance with GAAP. These non-GAAP financial measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP net income (loss), and non-GAAP diluted net income (loss) per share. We use these non-GAAP financial measures for financial and operational decision-making and as a mean to assist us in evaluating period-to-period comparisons.

    We define non-GAAP gross profit and non-GAAP gross margin as our GAAP gross profit and GAAP gross margin adjusted to exclude certain costs, including stock-based compensation expense, amortization of acquired intangible assets and payroll tax from the IPO lock-up release. We define non-GAAP operating income (loss), as our GAAP operating income (loss) adjusted to exclude certain costs, including IPO preparation costs, acquisition-related estimated litigation claim and legal costs, stock-based compensation expense, amortization of acquired intangible assets, payroll tax from the IPO lock-up release, and executive severance costs. We define non-GAAP net income (loss) as our GAAP net income (loss) adjusted to exclude certain costs, including IPO preparation costs, acquisition-related estimated litigation claim and legal costs, stock-based compensation expense, amortization of acquired intangible assets, payroll tax from the IPO lock-up release, executive severance costs, change in fair value of contingent consideration, foreign exchange (gain) loss, loss on debt extinguishment, and the income tax effect on non-GAAP items. Our non-GAAP diluted net income (loss) per share is calculated in the same way as our non-GAAP net income (loss), but on a per share basis. We monitor non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP net income (loss) and non-GAAP diluted net income (loss) per share as non-GAAP financial measures to supplement the financial information we present in accordance with GAAP to provide investors with additional information regarding our financial results.

    Certain items are excluded from our non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP net income (loss) and non-GAAP diluted net income (loss) per share because these items are non-cash in nature or are not indicative of our core operating performance and render comparisons with prior periods and competitors less meaningful. We adjust GAAP gross profit, GAAP gross margin, GAAP operating income (loss), GAAP net income (loss), and GAAP diluted net income (loss) per share for these items to arrive at non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP net income (loss), and non-GAAP diluted net income (loss) per share because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structure and the method by which the assets were acquired. By excluding certain items that may not be indicative of our recurring core operating results, we believe that non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP net income (loss) and non-GAAP diluted net income (loss) per share provide meaningful supplemental information regarding our performance.

    We believe these non-GAAP financial measures are useful to investors and others because they allow for additional information with respect to financial measures used by management in its financial and operational decision-making and they may be used by our institutional investors and the analyst community to help them analyze our financial performance and the health of our business. However, there are a number of limitations related to the use of non-GAAP financial measures, and these non-GAAP measures should be considered in addition to, not as a substitute for or in isolation from, our financial results prepared in accordance with GAAP. Other companies, including companies in our industry, may calculate these non-GAAP financial measures differently or not at all, which reduces their usefulness as comparative measures.

           
    SILVACO GROUP, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited, in thousands except share and par value amounts)
      December 31,   December 31,
      2024   2023
           
    ASSETS      
    Current assets:      
    Cash and cash equivalents $ 19,606     $ 4,421  
    Short-term marketable securities   63,071       –  
    Accounts receivable, net   9,211       4,006  
    Contract assets, net   11,932       8,749  
    Prepaid expenses and other current assets   3,460       2,549  
    Deferred transaction costs   –       1,163  
    Total current assets   107,280       20,888  
    Non-current assets:      
    Non-current marketable securities   4,785       –  
    Property and equipment, net   865       591  
    Operating lease right-of-use assets, net   1,711       1,963  
    Intangible assets, net   4,369       342  
    Goodwill   9,026       9,026  
    Non-current portion of contract assets, net   12,611       6,250  
    Other assets   1,698       1,825  
    Total non-current assets   35,065       19,997  
    Total assets $ 142,345     $ 40,885  
           
    Liabilities and stockholders’ equity      
    Current liabilities:      
    Accounts payable $ 3,316     $ 2,495  
    Accrued expenses and other current liabilities   19,801       10,255  
    Accrued income taxes   1,668       1,626  
    Deferred revenue, current   7,497       7,882  
    Operating lease liabilities, current   744       735  
    Related party line of credit   –       2,000  
    Vendor financing obligations, current   1,462       –  
    Total current liabilities   34,488       24,993  
    Non-current liabilities:      
    Deferred revenue, non-current   3,593       5,071  
    Operating lease liabilities, non-current   946       1,198  
    Vendor financing obligations, non-current   2,928       –  
    Other non-current liabilities   307       221  
    Total liabilities   42,262       31,483  
    Commitments and contingencies      
    Stockholders’ equity      
    Preferred stock, $0.0001 par value; 10,000,000 shares authorized, no shares issued and outstanding as of December 31, 2024; no shares authorized as of December 31, 2023   –       –  
    Common stock, $0.0001 par value; 500,000,000 shares authorized; 28,526,615 shares issued and outstanding as of December 31, 2024; 25,000,000 shares authorized; 20,000,000 shares issued and outstanding as of December 31, 2023   3       2  
    Additional paid-in capital   130,360       –  
    (Accumulated deficit) Retained earnings   (28,012 )     11,392  
    Accumulated other comprehensive loss   (2,268 )     (1,992 )
    Total stockholders’ equity   100,083       9,402  
    Total liabilities and stockholders’ equity $ 142,345     $ 40,885  
           
    SILVACO GROUP, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (Unaudited, in thousands except share and per share amounts)
                   
      Three months Ended December 31,   Twelve months Ended December 31,
        2024       2023       2024       2023  
                   
    Revenue:              
    Software license revenue $ 13,870     $ 8,738     $ 43,991     $ 39,331  
    Maintenance and service   3,989       3,748       15,689       14,915  
    Total revenue   17,859       12,486       59,680       54,246  
    Cost of revenue   2,422       2,682       12,042       9,354  
    Gross profit   15,437       9,804       47,638       44,892  
    Operating expenses:              
    Research and development   5,283       3,337       20,740       13,170  
    Selling and marketing   3,983       3,833       18,300       12,707  
    General and administrative   7,529       4,570       37,571       17,881  
    Estimated litigation claim   (3,782 )     –       11,306       –  
    Total operating expenses   13,013       11,740       87,917       43,758  
    Operating (loss) income   2,424       (1,936 )     (40,279 )     1,134  
    Loss on debt extinguishment   –       –       (718 )     –  
    Interest income   1,077       2       2,976       6  
    Interest and other expenses, net   (67 )     (95 )     (899 )     (630 )
    (Loss) income before income tax provision   3,434       (2,029 )     (38,920 )     510  
    Income tax provision (benefit)   (723 )     218       484       826  
    Net (loss) income $ 4,157     $ (2,247 )   $ (39,404 )   $ (316 )
    (Loss) earnings per share attributable to common stockholders:              
    Basic and diluted $ 0.14     $ (0.11 )   $ (1.53 )   $ (0.02 )
    Weighted average shares used in computing per share amounts:              
    Basic and diluted   28,734,082       20,000,000       25,672,845       20,000,000  
                   
    SILVACO GROUP, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited, in thousands)
      Year Ended December 31
        2024       2023  
    Cash flows from operating activities:      
    Net loss $ (39,404 )   $ (316 )
    Adjustments to reconcile net loss to net cash (used in) provided by operating activities:      
    Depreciation and amortization   1,285       601  
    Stock-based compensation expense   26,915       –  
    Provision for credit losses   351       220  
    Accretion of discount on marketable securities, net   (1,685 )     –  
    Estimated litigation claim   11,306       –  
    Loss on debt extinguishment   718       –  
    Change in fair value of contingent consideration   (27 )     325  
    Changes in operating assets and liabilities:      
    Accounts receivable   (5,971 )     1,378  
    Contract assets   (10,293 )     (5,208 )
    Prepaid expense and other current assets   (790 )     133  
    Other assets   57       (267 )
    Accounts payable   1,326       156  
    Accrued expenses and other current liabilities   (2,160 )     2,015  
    Accrued income taxes   74       (23 )
    Deferred revenue   (1,585 )     2,268  
    Other non-current liabilities   109       (102 )
    Net cash (used in) provided by operating activities   (19,774 )     1,180  
    Cash flows from investing activities:      
    Purchases of marketable securities   (99,630 )     –  
    Maturities of marketable securities   33,600       –  
    Purchases of property and equipment   (505 )     (339 )
    Net cash used in investing activities   (66,535 )     (339 )
    Cash flows from financing activities:      
    Proceeds from initial public offering, net of underwriting fees   106,020       –  
    Proceeds from issuance of convertible note, net of debt issuance costs   4,852       –  
    Proceeds from loan facility   4,250       –  
    Repayment of loan facility   (4,250 )     –  
    Proceeds from related party line of credit   –       1,000  
    Repayment of related party line of credit   (2,000 )     (1,000 )
    Proceeds from issuance of common stock for share-based awards   315       –  
    Payroll taxes related to shares withheld from employees   (4,575 )     –  
    Deferred transaction costs   (2,649 )     (650 )
    Contingent consideration   (74 )     (1,002 )
    Payments of vendor financing obligation   (588 )     –  
    Net cash provided by (used in) financing activities   101,301       (1,652 )
    Effect of exchange rate fluctuations on cash and cash equivalents   193       (246 )
    Net increase (decrease) in cash and cash equivalents   15,185       (1,057 )
    Cash and cash equivalents, beginning of period   4,421       5,478  
    Cash and cash equivalents, end of period $ 19,606     $ 4,421  
           
    SILVACO GROUP, INC.
    REVENUE
    (Unaudited)
                             
        2023   2024
        Q1 Q2 Q3 Q4 Year   Q1 Q2 Q3 Q4 Year
    Revenue by Region:                        
    Americas   35 % 29 % 31 % 29 % 31 %   27 % 51 % 31 % 40 % 38 %
    APAC   51 % 62 % 61 % 63 % 59 %   62 % 41 % 58 % 52 % 53 %
    EMEA   14 % 9 % 8 % 8 % 10 %   11 % 8 % 11 % 8 % 9 %
    Total revenue   100 % 100 % 100 % 100 % 100 %   100 % 100 % 100 % 100 % 100 %
                             
    Revenue by Product Line:                        
    TCAD   62 % 62 % 52 % 62 % 59 %   66 % 69 % 59 % 71 % 68 %
    EDA   29 % 20 % 31 % 22 % 26 %   30 % 20 % 24 % 24 % 24 %
    SIP   9 % 18 % 17 % 16 % 15 %   4 % 11 % 17 % 5 % 8 %
    Total revenue   100 % 100 % 100 % 100 % 100 %   100 % 100 % 100 % 100 % 100 %
                             
    Revenue Item Category:                        
    Software license revenue   75 % 71 % 74 % 70 % 73 %   77 % 74 % 62 % 78 % 74 %
    Maintenance and service   25 % 29 % 26 % 30 % 27 %   23 % 26 % 38 % 22 % 26 %
    Total revenue   100 % 100 % 100 % 100 % 100 %   100 % 100 % 100 % 100 % 100 %
                             
    Revenue by Country:                        
    United States   34 % 28 % 28 % 28 % 30 %   51 % 30 % 39 % 39 % 37 %
    China   19 % 29 % 16 % 29 % 23 %   17 % 25 % 23 % 23 % 18 %
    Other   47 % 43 % 56 % 43 % 47 %   32 % 45 % 38 % 38 % 45 %
    Total revenue   100 % 100 % 100 % 100 % 100 %   100 % 100 % 100 % 100 % 100 %
    SILVACO GROUP, INC.
    GAAP to Non-GAAP Reconciliation
    (Unaudited, in thousands except per share amounts)
                   
      Three Months Ended   Twelve Months Ended
      12/31/2024   12/31/2023   12/31/2024   12/31/2023
                   
    GAAP Cost of revenue $ 2,422     $ 2,682     $ 12,042     $ 9,354  
    Less: Stock-based compensation expense   (194 )     –       (2,974 )     –  
    Less: Amortization of acquired intangible assets   (249 )     –       (747 )     –  
    Less: Payroll tax from the IPO lock-up release   (80 )     –       (80 )     –  
    Non-GAAP Cost of revenue $ 1,899     $ 2,682     $ 8,241     $ 9,354  
    GAAP Gross profit $ 15,437     $ 9,804     $ 47,638     $ 44,892  
    Add: Stock-based compensation expense   194       –       2,974       –  
    Add: Amortization of acquired intangible assets   249       –       747       –  
    Add: Payroll tax from the IPO lockup release   80       –       80       –  
    Non-GAAP Gross profit $ 15,960     $ 9,804     $ 51,439     $ 44,892  
    GAAP Research and development $ 5,283     $ 3,337     $ 20,740     $ 13,170  
    Less: Stock-based compensation expense   (535 )     –       (5,091 )     –  
    Less: Executive severance   (215 )     –       (215 )     –  
    Less: Payroll tax from the IPO lock-up release   (397 )     –       (397 )     –  
    Less: Amortization of acquired intangible assets   (43 )     (82 )     (206 )     (339 )
    Non-GAAP Research and development $ 4,093     $ 3,255     $ 14,831     $ 12,831  
    GAAP Sales and marketing $ 3,983     $ 3,833     $ 18,300     $ 12,707  
    Less: Stock-based compensation expense   (388 )     –       (4,319 )     –  
    Less: Payroll tax from the IPO lock-up release   (85 )     –       (85 )     –  
    Less: IPO preparation costs   –       –       (178 )     –  
    Non-GAAP Sales and marketing $ 3,510     $ 3,833     $ 13,718     $ 12,707  
    GAAP General and administrative $ 7,529     $ 4,570     $ 37,571     $ 17,881  
    Less: Stock-based compensation expense   (1,410 )     –       (14,531 )     –  
    Less: Acquisition-related estimated litigation claim and legal costs   (523 )     (515 )     (4,629 )     (1,707 )
    Less: Executive severance   (200 )     –       (200 )     –  
    Less: Payroll tax from the IPO lock-up release   (163 )     –       (163 )     –  
    Less: IPO preparation costs   –       (45 )     (695 )     (1,221 )
    Non-GAAP General and administrative $ 5,233     $ 4,010     $ 17,353     $ 14,953  
    GAAP Estimated Litigation claim $ (3,782 )   $ –     $ 11,306     $ –  
    Add (Less): Acquisition-related estimated litigation claim and legal costs   3,782       –       (11,306 )     –  
    Non-GAAP Litigation claim $ –     $ –     $ –     $ –  
    GAAP Operating expenses $ 13,013     $ 11,740     $ 87,917     $ 43,758  
    Less: Stock-based compensation expense   (2,333 )     –       (23,941 )     –  
    Less: Acquisition-related estimated litigation claim and legal costs   3,259       (515 )     (15,935 )     (1,707 )
    Less: Executive severance   (415 )     –       (415 )     –  
    Less: Payroll tax from the IPO lock-up release   (645 )     –       (645 )     –  
    Less: IPO preparation costs   –       (45 )     (873 )     (1,221 )
    Less: Amortization of acquired intangible assets   (43 )     (82 )     (206 )     (339 )
    Non-GAAP Operating expenses $ 12,836     $ 11,098     $ 45,902     $ 40,491  
    GAAP Operating (loss) income $ 2,424     $ (1,936 )   $ (40,279 )   $ 1,134  
    Add: Stock-based compensation expense   2,527       –       26,915       –  
    Add (Less): Acquisition-related estimated litigation claim and legal costs   (3,259 )     515       15,935       1,707  
    Add: Payroll tax from the IPO lockup release   725       –       725       –  
    Add: Executive severance   415       –       415       –  
    Add: IPO preparation costs   –       45       873       1,221  
    Add: Amortization of acquired intangible assets   292       82       953       339  
    Non-GAAP Operating (loss) income $ 3,124     $ (1,294 )   $ 5,537     $ 4,401  
    GAAP Net (loss) income $ 4,157     $ (2,247 )   $ (39,404 )   $ (316 )
    Add: Stock-based compensation expense   2,527       –       26,915       –  
    Add: Amortization of acquired intangible assets   292       82       953       339  
    Add (Less): Acquisition-related estimated litigation claim and legal costs   (3,259 )     515       15,935       1,707  
    Add: Payroll tax from the IPO lockup release   725       –       725       –  
    Add: Executive Severance   415       –       415       –  
    Add: IPO preparation costs   –       45       873       1,221  
    Add: Loss on debt extinguishment   –       –       718       –  
    Add (Less): Change in fair value of contingent consideration   (9 )     (7 )     (27 )     325  
    Add (Less): Foreign exchange (gain) loss   (14 )     (3 )     404       335  
    Add: Income tax effect of non-GAAP adjustment   (566 )     (27 )     (831 )     (169 )
    Non-GAAP Net (loss) income $ 4,268     $ (1,642 )   $ 6,676     $ 3,442  
    GAAP Net income (loss) per share:              
    Basic and diluted: $ 0.14     $ (0.11 )   $ (1.53 )   $ (0.02 )
    Non-GAAP Net income (loss) per share:              
    Basic $ 0.15     $ (0.08 )   $ 0.26     $ 0.17  
    Diluted $ 0.15     $ (0.08 )   $ 0.25     $ 0.17  
    Weighted average shares used in GAAP and non-GAAP net income (loss) per share:              
    Basic   28,734,082       20,000,000       25,672,845       20,000,000  
    Diluted   28,849,041       20,000,000       26,841,901       20,000,000  
                   

    Investor Contact:
    Greg McNiff
    investors@silvaco.com

    Media Contact:
    Farhad Hayat
    press@silvaco.com

    The MIL Network –

    March 6, 2025
  • MIL-OSI: Climb Global Solutions Reports Record Fourth Quarter and Full Year 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    FY 2024 Net Income up 51% to $18.6 Million or $4.06 per share; Adjusted Net Income up 64% to $24.0 Million or $5.26 per share; Adjusted EBITDA up 61% to $39.6 Million

    Q4 & FY 2024 Net Sales, Gross Profit, Net Income, EPS and Adjusted EBITDA Increase to Record Levels

    EATONTOWN, N.J., March 05, 2025 (GLOBE NEWSWIRE) — Climb Global Solutions, Inc. (NASDAQ:CLMB) (“Climb” or the “Company”), a value-added global IT channel company providing unique sales and distribution solutions for innovative technology vendors, is reporting results for the fourth quarter and full year ended December 31, 2024.

    Fourth Quarter 2024 Summary vs. Same Year-Ago Quarter

    • Net sales increased 51% to $161.8 million.
    • Net income increased 33% to $7.0 million or $1.52 per diluted share.
    • Adjusted net income (a non-GAAP financial measure defined below) increased 87% to $10.3 million or $2.26 per diluted share.
    • Adjusted EBITDA (a non-GAAP financial measure defined below) increased 75% to $16.1 million.
    • Gross billings (a key operational metric defined below) increased 52% to $605.0 million. Distribution segment gross billings increased 57% to $582.0 million, and Solutions segment gross billings decreased 9% to $23.0 million.

    FY 2024 Summary vs. FY 2023

    • Net sales increased 32% to $465.6 million.
    • Net income increased 51% to $18.6 million or $4.06 per diluted share.
    • Adjusted net income (a non-GAAP financial measure defined below) increased 64% to $24.0 million or $5.26 per diluted share.
    • Adjusted EBITDA (a non-GAAP financial measure defined below) increased 61% to $39.6 million.
    • Gross billings (a key operational metric defined below) increased 42% to $1.8 billion. Distribution segment gross billings increased 44% to $1.7 billion, and Solutions segment gross billings increased 7% to $89.8 million.

    Management Commentary

    “Our fourth quarter performance capped off an exceptional 2024, marking another year of record results across all key financial metrics,” said CEO Dale Foster. “Throughout the year, we evaluated over 120 vendors and signed agreements with only 13 of them, demonstrating our commitment to partnering with the most innovative technologies in the market. We also added scale and expertise to our North America operations through the acquisition of Douglas Stewart Software & Services, LLC (“DSS”), which was immediately accretive to earnings. I’m proud of our team’s hard work in generating double-digit organic growth in both the U.S. and Europe, reinforcing our commitment to deepening relationships with our partners across our global footprint.

    “Looking ahead, we have a solid foundation in place to continue driving strong organic growth while further improving operating leverage through the implementation of our ERP system. We will also continue to evaluate M&A opportunities that can enhance our service and solutions offerings, as well as expand our geographic footprint in the U.S. and overseas. These initiatives, coupled with our demonstrated track record of execution and a robust balance sheet, will enable us to deliver on our organic and inorganic growth initiatives in 2025.”

    Dividend

    Subsequent to quarter end, on February 28, 2025, Climb’s Board of Directors declared a quarterly dividend of $0.17 per share of its common stock payable on March 21, 2025, to shareholders of record on March 17, 2025.

    Fourth Quarter 2024 Financial Results

    Net sales in the fourth quarter of 2024 increased 51% to $161.8 million compared to $106.8 million for the same period in 2023. This reflects organic growth from new and existing vendors, as well as contribution from the Company’s acquisition of DSS on July 31, 2024. In addition, gross billings in the fourth quarter of 2024 increased 52% to $605.0 million compared to $397.0 million in the year-ago period.

    Gross profit in the fourth quarter of 2024 increased 48% to $31.2 million compared to $21.1 million for the same period in 2023. The increase was driven by organic growth from new and existing vendors in both North America and Europe, as well as contribution from DSS.

    Selling, general, and administrative (“SG&A”) expenses in the fourth quarter of 2024 were $17.1 million compared to $12.4 million in the year-ago period. DSS represented $2.2 million of the increase. SG&A as a percentage of gross billings decreased to 2.8% for the fourth quarter of 2024 compared to 3.1% in the year-ago period.

    Net income in the fourth quarter of 2024 increased 33% to $7.0 million or $1.52 per diluted share, compared to $5.2 million or $1.15 per diluted share for the same period in 2023. Net income was impacted by a $2.5 million charge related to a change in fair value of acquisition contingent consideration associated with Spinnakar Limited. Adjusted net income increased 87% to $10.3 million or $2.26 per diluted share, compared to $5.5 million or $1.21 per diluted share for the year-ago period.

    Adjusted EBITDA in the fourth quarter of 2024 increased 75% to $16.1 million compared to $9.2 million for the same period in 2023. The increase was primarily driven by organic growth from both new and existing vendors, as well as contribution from the Company’s acquisition of DSS. Effective margin, which is defined as adjusted EBITDA as a percentage of gross profit, increased 780 basis points to 51.5% compared to 43.7% for the same period in 2023.

    On December 31, 2024, cash and cash equivalents were $29.8 million compared to $36.3 million on December 31, 2023, while working capital decreased by $9.3 million during this period. The decrease in cash was primarily attributed to $20.4 million of cash paid at closing for the acquisition of DSS, as well as the timing of receivable collections and payables. Climb had $0.8 million of outstanding debt on December 31, 2024, with no borrowings outstanding under its $50 million revolving credit facility.

    For more information on the non-GAAP financial measures discussed in this press release, please see the section titled, “Non-GAAP Financial Measures,” and the reconciliations of non-GAAP financial measures to their nearest comparable GAAP financial measures at the end of this press release.

    Conference Call

    The Company will conduct a conference call tomorrow, March 6, 2025, at 8:30 a.m. Eastern time to discuss its results for the fourth quarter and full year ended December 31, 2024.

    Climb management will host the conference call, followed by a question-and-answer period.

    Date: Thursday, March 6, 2025
    Time: 8:30 a.m. Eastern time
    Toll-free dial-in number: (800) 225-9448
    International dial-in number: (203) 518-9708
    Conference ID: CLIMB
    Webcast: Climb’s Q4 & FY 2024 Conference Call

    If you have any difficulty registering or connecting with the conference call, please contact Elevate IR at (720) 330-2829.

    The conference call will also be available for replay on the investor relations section of the Company’s website at www.climbglobalsolutions.com.

    About Climb Global Solutions

    Climb Global Solutions, Inc. (NASDAQ:CLMB) is a value-added global IT distribution and solutions company specializing in emerging and innovative technologies. Climb operates across the US, Canada and Europe through multiple business units, including Climb Channel Solutions, Grey Matter and Climb Global Services. The Company provides IT distribution and solutions for companies in the Security, Data Management, Connectivity, Storage & HCI, Virtualization & Cloud, and Software & ALM industries.

    Additional information can be found by visiting www.climbglobalsolutions.com.

    Non-GAAP Financial Measures

    Climb Global Solutions uses non-GAAP financial measures, including adjusted net income and adjusted EBITDA, as supplemental measures of the performance of the Company’s business. Use of these financial measures has limitations, and you should not consider them in isolation or use them as substitutes for analysis of Climb’s financial results under generally accepted accounting principles in the United States of America (“U.S. GAAP”). The attached tables provide definitions of these measures and a reconciliation of each non-GAAP financial measure to the most nearly comparable measure under U.S. GAAP.

    Key Operational Metric

    Gross Billings

    Gross billings are the total dollar value of customer purchases of goods and services during the period, net of customer returns and credit memos, sales, or other taxes. Gross billings include the transaction values for certain sales transactions that are recognized on a net basis, and, therefore, includes amounts that will not be recognized as revenue. We use gross billings as an operational metric to assess the volume of transactions or market share for our business as well as to understand changes in our accounts receivable and accounts payable. We believe gross billings will aid investors in the same manner.

    Forward-Looking Statements

    The statements in this release, other than statements of historical fact, are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are intended to come within the safe harbor protection provided by those sections. These forward-looking statements are subject to certain risks and uncertainties. Many of the forward-looking statements may be identified by words such as ”look forward,” “believes,” “expects,” “intends,” “anticipates,” “plans,” “estimates,” “projects,” “forecasts,” “should,” “could,” “would,” “will,” “confident,” “may,” “can,” “potential,” “possible,” “proposed,” “in process,” “under construction,” “in development,” “opportunity,” “target,” “outlook,” “maintain,” “continue,” “goal,” “aim,” “commit,” or similar expressions, or when we discuss our priorities, strategy, goals, vision, mission, opportunities, projections, intentions or expectations. In this press release, the forward-looking statements relate to, among other things, declaring and reaffirming our strategic goals, future operating results, and the effects and potential benefits of the strategic acquisition on our business. Factors, among others, that could cause actual results and events to differ materially from those described in any forward-looking statements include, without limitation, our ability to recognize the anticipated benefits of the acquisitions of Data Solutions Holdings Limited and Douglas Stewart Software & Services, LLC, the continued acceptance of the Company’s distribution channel by vendors and customers, the timely availability and acceptance of new products, product mix, market conditions, competitive pricing pressures, the successful integration of acquisitions, contribution of key vendor relationships and support programs, inflation, interest rate risk and impact thereof, as well as factors that affect the software industry in general. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described in the section entitled “Risk Factors” contained in Item 1A. of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and from time to time in the Company’s filings with the Securities and Exchange Commission.

    Company Contact

    Matthew Sullivan
    Chief Financial Officer
    (732) 847-2451
    MatthewS@ClimbCS.com

    Investor Relations Contact
    Sean Mansouri, CFA or Aaron D’Souza
    Elevate IR
    (720) 330-2829
    CLMB@elevate-ir.com

             
    CLIMB GLOBAL SOLUTIONS, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS
      (Unaudited)
    (Amounts in thousands, except share and per share amounts)
             
        December 31,
    2024
      December 31,
    2023
             
    ASSETS
             
    Current assets      
      Cash and cash equivalents $ 29,778     $ 36,295  
      Accounts receivable, net of allowance for doubtful accounts of $588 and $709, respectively   341,597       222,269  
      Inventory, net   2,447       3,741  
      Prepaid expenses and other current assets   6,874       6,755  
    Total current assets   380,696       269,060  
             
    Equipment and leasehold improvements, net   12,853       8,850  
    Goodwill   34,924       27,182  
    Other intangibles, net   36,550       26,930  
    Right-of-use assets, net   1,965       878  
    Accounts receivable long-term, net   1,174       797  
    Other assets   824       1,077  
    Deferred income tax assets   193       324  
             
    Total assets $ 469,179     $ 335,098  
             
    LIABILITIES AND STOCKHOLDERS’ EQUITY
             
    Current liabilities      
      Accounts payable and accrued expenses $ 370,397     $ 249,648  
      Lease liability, current portion   654       450  
      Term loan, current portion   560       540  
    Total current liabilities   371,611       250,638  
             
      Lease liability, net of current portion   1,685       879  
      Deferred income tax liabilities   4,723       5,554  
      Term loan, net of current portion   191       752  
      Non-current liabilities   381       2,505  
             
    Total liabilities   378,591       260,328  
             
             
    Stockholders’ equity      
      Common stock, $.01 par value; 10,000,000 shares authorized, 5,284,500 shares      
      issued, and 4,601,302 and 4,573,448 shares outstanding , respectively   53       53  
      Additional paid-in capital   37,977       34,647  
      Treasury stock, at cost, 683,198 and 711,052 shares, respectively   (13,337 )     (12,623 )
      Retained earnings   68,787       53,215  
      Accumulated other comprehensive loss   (2,892 )     (522 )
    Total stockholders’ equity   90,588       74,770  
    Total liabilities and stockholders’ equity $ 469,179     $ 335,098  
             
    CLIMB GLOBAL SOLUTIONS, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
    (Unaudited)
    (Amounts in thousands, except per share data)
                       
          Year ended   Three months ended
          December 31,   December 31,
            2024       2023       2024       2023  
                       
    Net Sales   $ 465,607     $ 352,013     $ 161,760     $ 106,783  
                       
    Cost of sales     374,527       287,766       130,513       85,713  
                       
    Gross profit     91,080       64,247       31,247       21,070  
                       
    Selling, general and administrative expenses     56,508       44,330       17,075       12,400  
    Depreciation & amortization expense     4,269       2,798       1,336       864  
    Acquisition related costs     2,311       629       1,110       352  
    Total selling, general and administrative expenses     63,088       47,757       19,521       13,616  
                       
    Income from operations     27,992       16,490       11,726       7,454  
                       
    Interest, net     917       927       162       168  
    Foreign currency transaction (loss) gain     (273 )     (636 )     415       (536 )
    Change in fair value of acquisition contingent consideration     (3,618 )     –       (2,466 )     –  
    Income before provision for income taxes     25,018       16,781       9,837       7,086  
    Provision for income taxes     6,408       4,458       2,847       1,840  
                       
    Net income   $ 18,610     $ 12,323     $ 6,990     $ 5,246  
                       
    Income per common share – Basic   $ 4.06     $ 2.72     $ 1.52     $ 1.15  
    Income per common share – Diluted   $ 4.06     $ 2.72     $ 1.52     $ 1.15  
                       
    Weighted average common shares outstanding – Basic   4,465       4,401       4,485       4,427  
    Weighted average common shares outstanding – Diluted   4,465       4,401       4,485       4,427  
                       
    Dividends paid per common share   $ 0.68     $ 0.68     $ 0.17     $ 0.17  
                       
                       
    Reconciliation of GAAP and Non-GAAP Financial Measures (unaudited)        
    (Amounts in thousands, except per share data)                
                       
    The table below presents net income reconciled to adjusted EBITDA (Non-GAAP) (1):
                       
          Year ended   Three months ended
          December 31, December 31,   December 31, December 31,
            2024       2023       2024       2023  
                       
    Net income   $ 18,610     $ 12,323     $ 6,990     $ 5,246  
      Provision for income taxes     6,408       4,458       2,847       1,840  
      Depreciation and amortization     4,269       2,798       1,336       864  
      Interest expense     335       264       69       170  
    EBITDA     29,622       19,843       11,242       8,120  
      Share-based compensation     4,070       4,148       1,260       726  
      Acquisition related costs     2,311       629       1,110       352  
      Change in fair value of acquisition contingent consideration     3,618       –       2,466       –  
    Adjusted EBITDA   $ 39,621     $ 24,620     $ 16,078     $ 9,198  
                       
                       
          Year ended   Three months ended
          December 31, December 31,   December 31, December 31,
    Components of interest, net     2024       2023       2024       2023  
                       
      Amortization of discount on accounts receivable with extended payment terms   $ (34 )   $ (50 )   $ (11 )   $ (9 )
      Interest income     (1,218 )     (1,141 )     (220 )     (329 )
      Interest expense     335       264       69       170  
    Interest, net   $ (917 )   $ (927 )   $ (162 )   $ (168 )
                       

    (1) We define adjusted EBITDA, as net income, plus provision for income taxes, depreciation, amortization, share-based compensation, interest, acquisition related costs and change in fair value of acquisition contingent consideration. We define effective margin as adjusted EBITDA as a percentage of gross profit. We provided a reconciliation of adjusted EBITDA to net income, which is the most directly comparable US GAAP measure. We use adjusted EBITDA as a supplemental measure of our performance to gain insight into our businesses profitability, operating performance and performance trends, and to provide management and investors a useful measure for period-to-period comparisons by excluding items that management believes are not reflective of our underlying operating performance. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results. Adjusted EBITDA is also a component to our financial covenants in our credit facility. Our use of adjusted EBITDA has limitations, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under US GAAP. In addition, other companies, including companies in our industry, might calculate adjusted EBITDA, or similarly titled measures differently, which may reduce their usefulness as comparative measures.

    The table below presents net income reconciled to adjusted net income (Non-GAAP) (2):
                       
          Year ended   Three months ended
        December 31, December 31,   December 31, December 31,
          2024     2023     2024     2023
                       
      Net income   $ 18,610   $ 12,323   $ 6,990   $ 5,246
      Acquisition related costs, net of income taxes     1,733     472     833     264
      One-time CEO stock grant     –     1,796     –     –
      Change in fair value of acquisition contingent consideration     3,618     –     2,466     –
      Adjusted net income   $ 23,961   $ 14,591   $ 10,289   $ 5,510
                       
      Adjusted net income per common share – diluted   $ 5.26   $ 3.24   $ 2.26   $ 1.21
                               

    (2) We define adjusted net income as net income excluding acquisition related costs, net of income taxes, the stock compensation expense recognized for the one-time CEO stock grant, and the change in fair value of acquisition contingent consideration. We provided a reconciliation of adjusted net income to net income, which is the most directly comparable U.S. GAAP measure. We use adjusted net income and adjusted net income per common share as supplemental measures of our performance to gain insight into our businesses profitability, operating performance and performance trends, and to provide management and investors a useful measure for period-to-period comparisons by excluding items that management believes are not reflective of our underlying operating performance. Accordingly, we believe that adjusted net income and adjust net income per common share provide useful information to investors and others in understanding and evaluating our operating results. Our use of adjusted net income has limitations, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under U.S. GAAP. In addition, other companies, including companies in our industry, might calculate adjusted net income, or similarly titled measures differently, which may reduce their usefulness as comparative measures.

    The table below presents the operational metric of gross billings by segment (3):
                       
          Year ended   Three months ended
        December 31, December 31,   December 31, December 31,
          2024     2023     2024     2023
                       
      Distribution gross billings   $ 1,695,538   $ 1,176,866   $ 581,963   $ 371,673
      Solutions gross billings     89,764     83,516     23,045     25,370
      Total gross billings   $ 1,785,302   $ 1,260,382   $ 605,008   $ 397,043
                       

    (3) Gross billings are the total dollar value of customer purchases of goods and services during the period, net of customer returns and credit memos, sales, or other taxes. Gross billings include the transaction values for certain sales transactions that are recognized on a net basis, and, therefore, include amounts that will not be recognized as revenue. We use gross billings as an operational metric to assess the volume of transactions or market share for our business as well as to understand changes in our accounts receivable and accounts payable. We believe gross billings will aid investors in the same manner.

    The MIL Network –

    March 6, 2025
  • MIL-OSI Global: Ending US birthright citizenship could have consequences for LGBTQ+ couples, lower-income parents and the surrogacy market

    Source: The Conversation – France – By Ashley Mantha-Hollands, Max Weber Fellow, Max Weber Programme for Postdoctoral Studies, European University Institute

    The first month of US President Donald Trump’s second term saw an onslaught of executive orders. The order aiming to change how birthright citizenship – the constitutional guarantee of citizenship to most children born within US territory – is granted could be the most consequential. Federal judges in Maryland, Washington state, Massachusetts and New Hampshire have issued nationwide injunctions against the order, and the San Francisco-based US Court of Appeals for the Ninth Circuit rejected the Trump administration’s appeal.

    To date, most media outlets, civil and human rights organisations, and activist groups have expressed concern about how a change to birthright citizenship would impact undocumented people and their children. However, a change could also have a series of further consequences, particularly for children of LGBTQ+ couples and children born through assisted reproductive technologies (ART) such as surrogacy.

    There are at least three related outcomes to consider: tension between federal and state definitions of parentage, a heightened administrative burden for establishing proof of citizenship, and the potential harm to what is the world’s largest surrogacy market.

    Who are the parents? Not so simple

    In countries where children obtain citizenship based on the citizenship of their parents, the legal parameters of the family are of utmost importance. For this reason, countries often provide specific definitions of who “counts” as a parent. In the US, this responsibility falls to the states, which provide their own definitions. One common practice is known as the “parturient” rule, which holds that the person giving birth is the legal “mother” and her spouse the legal “father”. This practice is increasingly contested. With the rise of ART and, in particular, surrogacy, the person giving birth is not always the intended parent. In fact, at least 14 US states have recognized that the parturient rule does not encompass many types of family arrangements and have altered their administrative frameworks so that “intended parents” can be immediately placed on birth certificates.

    While the establishment of parentage occurs at the state level, establishing citizenship is a federal responsibility. As a result, the federal government also provides its own legal definition of parenthood. This definition includes the following family roles: a genetic parent, a non-genetic gestational parent, a non-genetic and non-gestational spouse of a genetic and/or gestational parent, and parents of an adopted child. By contrast, the definitions in Trump’s executive order would spark a return to traditional heteronormative definitions of parentage. The mother is defined as “the immediate female biological progenitor” and the father as “the immediate male biological progenitor”. Such definitions leave out not only most LGBTQ+ couples, but also some families seeking ART, because children born through these modalities may not be biologically related to the intended parents.

    If the order comes into force, it would result in a mismatch between federal and state definitions of parentage and likely invite many legal disputes, while leaving some children born through ART at risk of statelessness if their parents are unrecognized as such. Citizenship is vital to an individual’s personal security: stateless children can, in some cases, be separated from their intended parents. Moreover, without a legal status, children and their families cannot benefit from the full range of federal and state services, including access to the child welfare system, funding opportunities for higher education and health care. For example, according to officials in 24 states, children would lose benefits from the Children’s Health Insurance Program and Supplemental Nutrition Assistance Program, which all US-born babies are currently eligible to receive.

    The bureaucratic burden

    The administrative burden of citizenship recognition for newborns is another overlooked issue in discussions about Trump’s order. In most cases, a birth certificate from a US state is sufficient to prove one’s citizenship status. After a child is born, hospitals normally transmit birth-certified information to the local municipality. The child’s birth certificate is then issued three-to-five business days later. The certificate suffices for recognition of citizenship and for federal documentation such as a passport.

    The executive order would increase the administrative burden for recognising citizenship. It is unclear, however, whether this burden would fall on the states or the federal government.

    In the first scenario, state bureaucracies would need to check the parents’ immigration status prior to issuing a birth certificate. This would undoubtedly cause confusion, as each state would need to provide new guidance and training to local bureaucrats on the medley of US immigration statuses and their attendant rights. The processing times for issuing birth certificates would increase, as verification procedures would require additional documentation. The fees for issuing certificates, currently between $7 and $35, would likely rise as well, since bureaucrats would need to investigate each birth rather than issue certificates automatically.

    If the administrative burden falls on the federal government, birth certificates would be issued in the same way and at the same cost by the states, but they would no longer be sufficient to prove a child’s citizenship. In this case, the government would need to issue citizenship certificates, which are normally reserved for proof of citizenship for children born abroad. Each case would require an individual investigation rather than being automatic, and while it’s hard to say how much fees could rise, current fees for citizenship certificates for children born abroad are north of $1,300. The processing of passport applications would take longer and likely be more costly, too, because a system to verify the immigration status of a child’s parents will need to be set up.

    In 2012, the National Foundation for American Policy (NFAP) released a report that outlined the potential impacts of ending the current approach to birthright citizenship. The report estimates, based on the costs of US citizenship certificates for children born abroad, that changing the existing law – which Trump’s order seeks to reinterpret – would cost parents “approximately $600 in government fees to prove the citizenship status of each baby and likely an additional $600 to $1,000 in legal fees”. The report describes these costs as a “tax” on “each baby born in the United States”.

    Alternately, the US could establish a new national ID card system, but this would also have bureaucratic costs. This type of ID card is common in European countries: with some variation between systems, cards can be used for travel within the EU (as an alternative to a passport) and are generally used to prove citizenship status to vote or receive certain social services. But unlike in the European states that issue these cards, the US government has no registry of vital records and would need a new administrative structure to create one. When the UK government discussed such a system in 2007, its total cost was estimated to be at least 5.75 billion pounds.

    The NFAP report mentions the federal systems that rely on the current practice of state-administered birth certificates and automatic citizenship to function. These systems include the Social Security Administration, which handles retirement, disability and family benefits, and the E-Verify system, which determines whether a person has authorisation to work in the US. The report states that systems such as E-Verify “have cost the American taxpayer billions of dollars. There is no reason to believe that a change to the Citizenship Clause requiring the verification of parents’ immigration status would be any less expensive.”

    Costs to the US surrogacy market

    The US surrogacy industry is the largest in the world. It is valued at over $20 billion (and is expected to grow to $195 billion by 2034), and attracts families from European and Asian countries where surrogacy is not as prevalent or is illegal. An important factor in the size of this market is the attractive environment for surrogacy arrangements. First, surrogacy is relatively mainstreamed in the US, and there are many companies that help with finding donors, surrogates and with navigating the legal process. Second, intended parents have the security of knowing their children will have immediate access to travel documents, such as a US passport, after birth. If a new definition of parentage goes into effect, thus removing the guarantee of US citizenship, the status of children born through surrogacy could be at risk. The attractiveness of the US surrogacy market would likely suffer, because parents would face time-consuming and costly steps to secure status and immigration documents to allow travel between the US and their home country.

    An unclear fate

    The approach to parenthood in the executive order on birthright citizenship aligns with the Trump administration’s overall push toward pronatalism and traditional heterosexual family models. Trump has also signed another executive order expanding access to in vitro fertilization (IVF) for “longing mothers and fathers”. The definition of parentage in this order also leaves out same-sex couples, who often receive IVF treatments.

    The fate of the birthright citizenship order is unclear, and it will likely end up reaching the Supreme Court. Legal debates must include the constitutionality of denying automatic citizenship to US-born children, the effect on children born via assisted reproductive technologies, and the bureaucratic and financial burdens placed on states and parents. While an end to birthright citizenship would immediately affect the children of undocumented people, taking a step back reveals other consequences that could impact the broader US public for generations to come.

    Les auteurs ne travaillent pas, ne conseillent pas, ne possèdent pas de parts, ne reçoivent pas de fonds d’une organisation qui pourrait tirer profit de cet article, et n’ont déclaré aucune autre affiliation que leur organisme de recherche.

    – ref. Ending US birthright citizenship could have consequences for LGBTQ+ couples, lower-income parents and the surrogacy market – https://theconversation.com/ending-us-birthright-citizenship-could-have-consequences-for-lgbtq-couples-lower-income-parents-and-the-surrogacy-market-250846

    MIL OSI – Global Reports –

    March 6, 2025
  • MIL-OSI Global: Investors value green labels — but not always for the right reasons

    Source: The Conversation – Canada – By Vasundhara Saravade, Postdoctoral Fellow, Institute of the Environment, L’Université d’Ottawa/University of Ottawa

    Imagine you are choosing between two similar investment options. One has a green label, promising to fund climate-friendly projects and assets. The other offers a slightly higher return, but has no green label. Which do you choose?

    My recent study explored this question. My co-researchers and I found that, for most retail investors — individual, non-professional investors — the presence of a green label mattered more than the actual environmental impact of the bond or the higher financial return of a non-green option.

    This finding raises critical questions about how sustainable finance is marketed and whether green labels alone are enough to drive real environmental change.

    Green bonds and retail investors

    Green bonds are a financial tool designed to fund environmentally friendly projects. Institutional investors and governments have embraced them, but their adoption by everyday retail investors remains low.

    The Canadian market was one of the first to provide access to retail-level green bonds, but demand for such bonds was always oversubscribed. Low interest rates made it difficult to balance investor returns with lending profits. This imbalance squeezed sustainable investment firms like CoPower, which ultimately led to its green bond model winding down.

    With the urgent need to attract capital for climate financing, the role of retail investors is now a key topic of discussion. In 2021, these investors accounted for 52 per cent of global assets under management in 2021 — a figure expected to jump to nearly 61 per cent by 2030. This presents a massive opportunity to mobilize private capital toward sustainable finance.

    However, before retail investors venture into the green bond market, the sustainable finance sector must address a key question: do people invest in green bonds because they believe in their environmental benefits or simply because of the “green” label?

    And, more importantly, does the green label alone persuade retail investors to accept a “greenium” — choosing a lower-return green bond over a higher-return non-green bond — like professional investors do?

    The ‘green-label effect’ is real

    To determine this, my co-researchers and I conducted an experiment with over 1,000 self-identified retail investors to see how different framing techniques — such as labels, environmental impact and reporting descriptions — shaped their willingness to invest in green bonds.

    Our study identified a “green label effect.” Most retail investors relied on green labels as a shortcut to save time and avoid having to evaluate the environmental impact of a bond. Investors often relied on simplified decision cues like labels and financial returns to navigate complex financial information.




    Read more:
    Sustainable finance: Canada risks being left behind in low-carbon economy


    However, a small subset of environmentally conscious investors researched the validity of green bonds and aligned their investments with their values, even at the cost of lower returns.

    This highlights the need for green bonds that offer a competitive return, given that a majority still invest based on financial returns in addition to labelling. Labelling alone is not enough to drive mainstream retail investment in sustainable finance.

    Our study also found that certain types of personal characteristics made people more likely to invest in labelled green bonds, even if those bonds had the lowest financial returns. Investors with a high-risk tolerance were more likely to invest in green bonds.

    Additionally, previous investment experience played a role. Those who had moderately invested in stocks, had none to high levels of experience investing in bonds.

    The greenwashing challenge

    Our findings highlight both the potential and pitfalls of sustainable finance. The popularity of green-labelled bonds suggests that retail investors are open to sustainable investment and would help to drive growth in this market considerably.

    However, the fact that many choose labels without finding out whether the bond is actually green raises concerns about greenwashing. This practice occurs when companies exploit sustainability branding and use green labels on non-green bonds to avoid delivering environmental impact.

    If investors rely too much on green labels without verifying the actual impact of their investments, they may inadvertently support projects that fail to make a meaningful difference.

    As green finance regulations evolve, governments must strengthen labelling standards and transparency. This would ensure that labelled green bonds deliver on their promises.

    Stronger green taxonomies and consumer oversight mechanisms would help prevent misleading claims, protect investors and ensure sustainable finance can scale quickly. Without these safeguards, green bonds could lose credibility and fail to scale effectively.

    What should policymakers do?

    To expand the green bond market and align it with Canada’s climate goals, policymakers could introduce tax-free government green bonds or green infrastructure bonds. These would incentivize retail investors and raise their awareness of sustainable finance.

    Policymakers could allow banks to add green bonds to registered products like tax-free savings accounts or registered retirement savings plans. They could create new green registered products that would encourage individual-level savings and investment, like the first home savings account.

    Making verified climate-related financial disclosures easier to use could help retail investors better understand the impact of green products. This would reduce reliance on labels alone and encourage more informed decision-making.

    Green bonds have the potential to be a powerful tool in the fight against climate change, but only if they’re backed by real accountability. As our study shows, labels matter a lot — but what’s behind them matters most.

    Vasundhara Saravade is affiliated with the Smart Prosperity Institute.

    – ref. Investors value green labels — but not always for the right reasons – https://theconversation.com/investors-value-green-labels-but-not-always-for-the-right-reasons-251021

    MIL OSI – Global Reports –

    March 6, 2025
  • MIL-OSI USA: Warner, Kaine, and Klobuchar Unveil Legislation to Undo President Trump’s Senseless Taxes on Canadian Goods

    US Senate News:

    Source: United States Senator for Commonwealth of Virginia Mark R Warner
    WASHINGTON– Today, U.S. Sens. Mark R. Warner (D-VA), Tim Kaine, Ranking Member of the Senate Foreign Relations Subcommittee on the Western Hemisphere, (D-VA), and Amy Klobuchar (D-MN), unveiled legislation to undo President Donald Trump’s wildly unpopular tariffs on Canadian goods, which amount to a 25 percent tax on goods imported from one of America’s top trading partners and closest allies.
    “Virginians can’t afford the cost of President Trump’s tariffs, which will raise prices on everything from groceries to houses and cars,” said Sen. Warner. “Congress must step in before President Trump tanks our economy.”
    “Americans want prices to go down—not skyrocket, which is exactly what will happen if Congress lets President Trump slap new taxes on goods from one of our largest trading partners and closest allies,” said Sen. Kaine. “We don’t need to guess what kind of damage these senseless new taxes will do. During Trump’s first term, his trade wars spelled disaster for Virginians, particularly for farmers and foresters who were hit especially hard. Congress has a responsibility to stop that from happening again, and I urge all of my colleagues to join me in blocking Trump from destroying our economy.”
    “This Administration is igniting a reckless trade war and regular Americans are paying the price,” said Sen. Klobuchar. “Costs for everyone will go up and our farmers and businesses will suffer. Canada is Minnesota’s top trading partner and is a key U.S. ally. We must reverse these damaging tariffs before it’s too late.”
    In Virginia in 2024, Canada was the largest export market and accounted for 15 percent of Virginia exports. In Virginia in 2022, top goods exports to Canada included motor vehicles and transportation equipment, such as medium- and heavy-duty trucks. 56.1 percent of Southwest Virginia’s economic output is dependent on trade.
    Polls have overwhelmingly demonstrated that the American people do not support Trump’s trade wars. According to a recent survey by Public First, just 28 percent of American adults supported specifically applying tariffs to Canada, while 43 percent opposed.
    Specifically, the senators’ legislation would work by terminating the February 1 emergency that Trump used to launch his trade war with Canada, and thus eliminate the tariffs on Canadian imports implemented as a result. Trump’s order cites the International Economic Emergency Powers Act (IEEPA), an unprecedented use of IEEPA in its nearly half century history. After an initial one-month delay, President Trump decided to move forward with the tariffs, with the import taxes starting to be collected on March 4, 2025. In total, President Trump’s IEEPA tariffs will cost the average American household up to $2,000 a year, with the Canada tariffs making up a significant portion of that. These IEEPA tariffs represent the largest tax increase on American families in recent history.

    MIL OSI USA News –

    March 6, 2025
  • MIL-OSI Canada: Securing the Alberta-U.S. border

    [. Alberta’s government recognizes the need for swift and decisive action that will curb drug trafficking and illegal border crossings to strengthen the province’s border security.

    The team’s first cohort has been deployed and hiring will continue until all 51 positions are filled. The IPT is now operational, working closely with the RCMP and Canada Border Services Agency to identify and apprehend individuals suspected of drug smuggling, human trafficking and other illegal activities involving movement across the Canada-U.S. border. To date, 20 members of the Alberta Sheriffs have been assigned to the IPT to patrol between entry points, and to vehicle inspection stations along Alberta’s side of the border.

    Sheriffs Interdiction Patrol Team map

    “We are committed to strengthening security along Alberta’s southern border to put an end to the dangerous criminal activities that are destroying lives on both sides of the border. In addition to launching our new Interdiction Patrol Team, we are building three new vehicle inspection stations and increasing highway monitoring for suspicious activity. Our plan will ensure that Alberta’s southern border is secure.”

    Danielle Smith, Premier

    “Alberta’s government is increasing border security and has zero tolerance for illegal activities that threaten the well-being of Albertans or Alberta’s economy. The Alberta Sheriffs Interdiction Patrol Team puts more boots on the ground to identify where and when these activities are taking place, boosting security along our southern border and disrupting dangerous cross-border human, drugs and weapons trafficking in both directions. Let this be a message to all potential traffickers, especially those who traffic deadly fentanyl, you will get caught and you will go to jail.”

    Mike Ellis, Minister of Public Safety and Emergency Services

    Alberta’s government continues to acquire equipment that will enable the IPT to detect and apprehend individuals committing illegal activity, including drones, night-vision optics and patrol canines. This team will patrol to detect and intercept illicit drugs, illegal firearms and unlawful attempts at illegal international border crossing. The IPT will be fully operational in coming months.

    Through this process, Alberta has identified further significant concerns with the shared Canada-U.S. border. In response, Alberta’s government is advancing further measures to increase the security of the southern border.

    In addition to the IPT, Alberta Transportation and Economic Corridors is dedicating $15 million over two years for three new vehicle inspection stations near the border, if Budget 2025 passes. This will give Sheriffs dedicated facilities to inspect commercial vehicles, whether they’re crossing into the United States or coming into Canada. The stations will be located on Highway 1 at Dunmore, Highway 3 at Burmis and Highway 4 at Coutts. The stations will include enhanced parking lanes for inspections, and winter ready buildings for year-round inspections.

    Another measure undertaken by Alberta’s government is to train highway maintenance workers to identify and report suspicious activity during highway maintenance operations. Volker Stevin has a contract to maintain about 600 kilometres of highways in southern Alberta and by empowering their workers to identify and report suspicious activity, Alberta’s government is layering further security measures without adding additional costs.

    “Border security is a priority, and Alberta Transportation and Economic Corridors is doing its part to enhance security and surveillance through three new vehicle inspection stations and with the help of our highway maintenance contractors, who will be trained to detect and report suspicious activity, providing an extra pair of eyes along the border.”

    Devin Dreeshen, Minister of Transportation and Economic Corridors

    “The Interdiction Patrol Team will play a key role in eradicating crimes that seek to exploit the Alberta-Montana border in both directions. The Alberta Sheriffs are pleased to collaborate with the RCMP, Canada Border Services Agency and our counterparts in the United States as we work to keep our shared border safe and secure.”

    Bob Andrews, chief, Alberta Sheriffs

    Alberta’s government also amended the Critical Infrastructure Defence Regulation in January 2025 to add a two-kilometre-deep border zone north of the Alberta-United States border to the definition of essential infrastructure under the Critical Infrastructure Defence Act. The act gives peace officers the authority to arrest individuals caught trespassing on, interfering with or damaging essential infrastructure and who do not have a lawful right, to be on the essential infrastructure.

    “Amending the Critical Infrastructure Defence Regulation is a key piece of our efforts to strengthen security in the area near the international border. We have quickly taken action that will support law enforcement in improving public safety, and tackle cross-border crime, drugs, illegal migrants and human-trafficking.”

    Mickey Amery, Minister of Justice and Attorney General

    Quick facts:

    IPT will be supported by:

    • 51 uniformed officers equipped with carbine rifles (weapons for tactical operations)
    • 10 support staff, including dispatchers and analysts
    • four drug patrol dogs, critical to ensure reasonable suspicion to search vehicles
    • 10 cold weather surveillance drones that can operate in high winds with dedicated pilots
    • four narcotics analyzers to test for illicit drugs

    The IPT has already conducted more than 3,300 stops/contacts and has been successful in:

    • assisting with four Northbound unauthorized border crossings
    • executing 18 warrants and conducting two Judicial Interim Release hearings
    • conducting three arrests related to possession of cocaine for the purpose of trafficking

    Related news

    • A plan to secure Alberta’s southern border (Dec. 12, 2024)

    Multimedia

    • Watch the news conference

    MIL OSI Canada News –

    March 6, 2025
  • MIL-OSI Africa: International Monetary Fund (IMF) Staff Completes Visit to Mozambique

    Source: Africa Press Organisation – English (2) – Report:

    MAPUTO, Mozambique, March 5, 2025/APO Group/ —

    • IMF staff and the Mozambican authorities have discussed performance and policies underpinning the Fifth and Sixth Reviews of the Extended Credit Facility (ECF) arrangement. Discussions were fruitful and will continue virtually in the coming weeks.

    An International Monetary Fund (IMF) team, led by Mr. Pablo Lopez Murphy, conducted discussions from February 19 to March 4, 2025, with the Mozambican authorities on policies underpinning the Fifth and Sixth Reviews under the Extended Credit Facility (ECF)-supported arrangement.  

    At the end of the IMF team’s visit, Mr. Lopez Murphy issued the following statement:

    “The IMF team has held constructive discussions with the Mozambican authorities on the fiscal, financial, and structural policies needed to support the completion of the Fifth and Sixth Reviews of the ECF arrangement.

    “Economic activity contracted sharply in the last quarter of 2024, reflecting the impact of social unrest. Real GDP declined -4.9 percent (yoy) in 2024Q4 from growth of 3.7 percent (yoy) in 2024Q3. Overall growth in 2024 was 1.9 percent. For 2025, growth is projected to recover to 3.0 percent as social conditions normalize and economic activity picks up, especially in services.

    “Preliminary estimates suggest that there were significant fiscal slippages in 2024 that are in part explained by the slowdown in economic activity during the last quarter. Fiscal consolidation in 2025 is necessary to secure fiscal and debt sustainability and preserve macroeconomic stability. Wage bill spending overruns continue crowding out important spending priorities including social transfers and infrastructure. Rationalizing wage bill spending and reducing tax exemptions should underpin fiscal consolidation, social spending should be prioritized, and debt management could be further strengthened to avoid arrears.

    “Inflation pressures picked up but remain controlled. The Bank of Mozambique initiated a loosening cycle in January 2024, cutting the policy rate by 500bps so far (to 12.25 percent). The central bank also reduced reserve requirements on local currency deposits, from about 39 to 29 percent, in late January 2025. Despite supply-chain disruptions and higher food prices related to social unrest, inflation remained below the implicit target of 5 percent.

    “The IMF staff team met with President Daniel Chapo, Prime Minister Maria Levy, Minister of Finance Carla Loveira, Governor of the Bank of Mozambique Rogério Zandamela, and other senior officials. The mission also met with representatives of civil society, political parties, development partners, and the private sector.

    “The team wishes to thank the Mozambican authorities for their excellent cooperation and for the frank and constructive dialogue during the mission. Discussions related to the program reviews will continue in the coming weeks.”

    MIL OSI Africa –

    March 6, 2025
  • MIL-OSI USA: Booker, Hawley Introduce Bipartisan Legislation to Speed Up Labor Contracts

    US Senate News:

    Source: United States Senator for New Jersey Cory Booker
    WASHINGTON, D.C. – Today, U.S. Senators Cory Booker (D-NJ) and Josh Hawley (R-MO) led a bipartisan group of colleagues in introducing legislation to speed up first contracts for new unions. The legislation would ensure that when workers vote to unionize, a labor agreement ultimately becomes a reality. U.S. Senators Gary Peters (D-MI), Bernie Moreno (R-OH), and Jeff Merkley (D-OR) joined as original cosponsors.  
    After workers vote to form a union, they don’t immediately reap the benefits of collective bargaining. Instead, they first need to obtain an initial agreement with management. But current law stacks the deck in favor of anti-union employers. While existing labor law requires workers and employers to bargain in good faith, the law currently doesn’t impose a negotiation deadline. Over the last few years, it’s taken longer and longer for new unions to secure first contracts. On average, it takes well over a year to get an agreement.
    “Americans deserve fair wages, safe workplaces, and good benefits in exchange for their hard work—and forming a union helps workers fight for fairness in their workplace,” said Senator Booker. “Workers who vote to join a union have the right to form that union quickly, instead of facing years of delays from big corporations. This bipartisan bill would ensure that workers are able to have their voices heard and more quickly enjoy the benefits of forming a union instead of facing uncertainty and prolonged stalling tactics.” 
    “The status quo hurts workers. Despite exercising their legal—and moral—right to bargain collectively, workers are often prevented from enjoying the benefits of the union they voted to form when mega-corporations drag their feet, slow-walk contract negotiations, and try to erode support for the union,” said Senator Hawley. “It’s wrong. We need real labor reform that puts workers first. I’m proud to introduce bipartisan and Teamsters-endorsed legislation that does just that.”
    “When unions thrive, working families thrive. Our bipartisan effort is an important step forward to support hardworking Americans by making it easier to form a union, leading to better wages and benefits for all workers. Senator Hawley and I will do all we can to advance this common-sense reform to benefit workers nationwide,” said Senator Merkley.
    “When employees stand together to organize their workplace, they deserve to get to the bargaining table as soon as possible,” said Senator Peters. “This bipartisan bill is a step in the right direction. It would help crack down on union busting tactics so our workers can fight for the wages and benefits they deserve, without interference and attempts to delay the process.”
    “Greedy corporations will stop at nothing to keep workers from getting a fair first contract. Their playbook is simple: stall, delay, and drag out negotiations to deny workers from securing the wages and conditions they deserve. Teamsters are proud to support the Faster Labor Contracts Act—real labor law reform that forces employers to bargain in good faith and holds them accountable when they don’t,” said Teamsters General President Sean M. O’Brien. 
    The Faster Labor Contracts Act would:
    Amend the National Labor Relations Act to require that after workers have voted to form a union, employers must begin negotiating with the new union within 10 days.
    Provide that if no agreement is reached within 90 days, the dispute will be referred to mediation.
    Stipulate that if mediation fails within 30 days, or additional periods agreed upon by the parties, the dispute will be referred to binding arbitration to secure an initial contract.
    Commission a Government Accountability Office report on average workplace time-to-contract one year after enactment.
    Senator Booker has long championed workers’ rights, including by protecting their right to organize. Last Congress, he introduced the Richard L. Trumka Protecting the Right to Organize (PRO) Act, a comprehensive proposal to protect the rights of workers to come together and bargain for higher wages, better benefits, and safer workplaces. While large corporations and wealthy individuals continue to capture the rewards of a growing economy, working families and underserved Americans are left behind.
    To read the full text of the bill, click here.

    MIL OSI USA News –

    March 6, 2025
  • MIL-OSI Canada: Saskatchewan to Halt United States Alcohol and Procurement

    Source: Government of Canada regional news

    Released on March 5, 2025

    Today, Premier Scott Moe announced that the Government of Saskatchewan has directed Saskatchewan Liquor and Gaming Authority (SLGA) to stop purchasing US-produced alcohol and has directed that goods and services procured by the Government of Saskatchewan prioritize Canadian suppliers, with the goal of reducing or eliminating US procurement. 

    Any future government capital projects have been paused and for those projects in process, contractors will be asked to report on American products and reduce that amount. 

    “These extraordinary measures are a direct response to President Trump’s unjustified tariffs and a direct attack on the Canadian economy,” Moe said. “This decision was not made lightly, but the Government of Saskatchewan has always and will always stand up for Saskatchewan’s interests and protect our jobs, our economy and our residents.”

    Liquor retailers will no longer be able to order US-produced alcohol, however they may still choose to sell their remaining inventory. This approach defends the interests of Saskatchewan’s economy while avoiding negative impacts on Saskatchewan’s liquor retailers who have already purchased US products. 

    Lotteries and Gaming Saskatchewan has been directed to source from other suppliers the $43 million of VLT and slot machines that are to be upgraded this year and are currently procured from the United States. 

    “The United States has always been Saskatchewan’s largest and most important trading partner, but when they attack our economy, we have to push back,” Moe said. “Our exports lower the cost of living for millions of Americans and support jobs on both sides of the border. Our goal is to end these tariffs and retaliatory measures as soon as possible so that we can resume our long standing, mutually beneficial relationship.”

    The Government of Saskatchewan will also expect school divisions, municipalities and post-secondary institutions to adopt similar procurement policies that prioritize Canadian goods and services. 

    -30-

    For more information, contact:

    MIL OSI Canada News –

    March 6, 2025
  • MIL-OSI United Nations: Experts of the Human Rights Committee Commend Montenegro’s Measures Preventing Violence against Women, Raise Issues Concerning Corruption and Historic Human Rights Violations

    Source: United Nations – Geneva

    The Human Rights Committee today concluded its consideration of the second periodic report of Montenegro on how it implements the provisions of the International Covenant on Civil and Political Rights.  Committee Experts commended the State for its measures preventing violence against women, while raising issues concerning historic human rights violations committed during the armed conflict in the former Yugoslavia and corruption.

    One Committee Expert said the State Party had made notable progress in addressing violence against women, including adopting the Protocol on Prevention and Treatment in Cases of Domestic Violence and the National Plan for the Implementation of the Istanbul Convention.  What measures were in place to ensure that legal reforms translated into effective enforcement and that penalties reflected the severity of the crimes?

    Regarding serious human rights violations committed during the armed conflict in the former Yugoslavia, one Committee Expert expressed concern that impunity seemed to persist in many aspects.  There was increased negationist discourse, including denial of the Srebrenica genocide. Could the State party shed light on the fight against denialist discourse?  What measures were being taken to speed up investigations and prosecutions?

    Another Expert said that in Montenegro, corruption was perceived as an aspect of great concern for citizens.  What concrete measures had been put in place to ensure that cases of corruption by high-level officials resulted in appropriate convictions and penalties?

    Introducing the report, Bojan Božović, Minister of Justice of Montenegro and head of the delegation, said implementing the Covenant’s standards was of great importance to Montenegro, which was now striving for membership in the community of developed European democracies.

    Regarding violence against women, the delegation said that, in 2023, in addition to legal amendments, a mandatory instruction was adopted mandating all prosecutors to act proactively in cases of domestic violence and to apply the Istanbul Convention. Some 622 final judgements had been enacted on domestic violence cases in 2024, with the majority being convictions.

    Mr. Božović said Montenegro had placed the prevention and suppression of corruption at the top of the policy and law enforcement agenda.  In 2024, shortcomings identified in previous law enforcement practices were eliminated.  There were also plans to adopt new legal amendments to enable the Agency for the Prevention of Corruption to have direct access to public officials’ accounts. Through the adoption of the Law on Lobbying, the State aimed to prevent undue influence in legislative processes.

    Regarding historic human rights violations, the delegation said the most senior members of Government made efforts to memorialise the day of the Srebrenica genocide. Inappropriate statements would be sanctioned when made during elections.  There had also been a resolution adopted in Parliament on the genocide in Srebrenica.  There would no longer be impunity for war crimes in Montenegro and proactive action had been taken in this regard, the delegation said.  Cases which had been finalised would be reopened and thoroughly examined.  The strategy to combat war crimes was adopted in June 2024, which had resulted in four cases previously considered to be finalised being reopened.

    In concluding remarks, Blagoje Gledović, Director General of the Directorate for the International Cooperation and International Legal Aid, Ministry of Justice of Montenegro, and alternative head of the delegation, said that over the reporting period, the State party had undertaken several reforms to promote civil and political rights and to meet the requirements for accession to the European Union.  Montenegro remained committed to the implementation of the Covenant through national legislation and all other available measures.

    Changrok Soh, Committee Chairperson, said in concluding remarks that the dialogue had covered a wide range of topics related to the implementation of the Covenant by the State party, highlighting the progress made and challenges faced.  The Committee was committed to fulfilling its mandate to ensure the highest standard of implementation of the Covenant in Montenegro.

    The delegation of Montenegro was made up of representatives of the Ministry of Justice; the Ministry of Human and Minority Rights; the Ministry of the Interior; the Supreme State Prosecutor’s Office; the Supreme Court; the Police Directorate; the Parliament of Montenegro; and the Permanent Mission of Montenegro to the United Nations Office at Geneva.

    The Human Rights Committee’s one hundred and forty-third session is being held from 3 to 28 March 2025. All the documents relating to the Committee’s work, including reports submitted by States parties, can be found on the session’s webpage.  Meeting summary releases can be found here.  The webcast of the Committee’s public meetings can be accessed via the UN Web TV webpage.

    The Committee will next meet in public at 3 p.m. on Wednesday, 5 March, to begin its consideration of the second periodic report of Burkina Faso (CCPR/C/BFA/2).

    Report

    The Committee has before it the second periodic report of Montenegro (CCPR/C/MNE/2).

    Presentation of Report

    BOJAN BOŽOVIĆ, Minister of Justice of Montenegro and head of the delegation, said implementing the Covenant’s standards was of great importance to Montenegro as a relatively young United Nations member but an old European state, now striving for membership in the community of developed European democracies.

    Montenegro had placed the prevention and suppression of corruption at the top of the policy and law enforcement agenda.  In 2024, through amendments to the Law on the Prevention of Corruption, the work of the Agency for the Prevention of Corruption was enhanced, and shortcomings identified in previous law enforcement practices were eliminated.  The State had continued to strengthen the anti-corruption framework in 2025, with plans to adopt new amendments to the law that would enable the Agency for the Prevention of Corruption to have direct access to public officials’ accounts. Through the adoption of the Law on Lobbying, the State aimed to prevent undue influence in legislative processes, increase institutional transparency, and increase the number of certified lobbyists registered in the official registry.

    Amendments to the Law on the Judicial Council and Judges were adopted in 2024, improving provisions related to the functioning of the Judicial Council, the system of ethical and disciplinary responsibility for judges and their evaluation.  Amendments to the Law on the State Prosecutor’s Office had also been enacted to enhance the autonomy, accountability, and efficiency of the Office and the Prosecutorial Council. In May 2024, the Government of Montenegro adopted the Judicial Reform Strategy 2024- 2027, accompanied by an action plan.  Efforts were also being made to ensure the judiciary’s efficiency and sustainability through the Judicial Network Rationalisation Plan, which provided for the reorganisation of Montenegro’s court network. 

    Regarding domestic violence, Montenegro had largely harmonised its domestic legislation with international standards, with a goal of zero tolerance and maximum protection for vulnerable groups.  The law amending the Law on Legal Aid, enacted in December 2024, guaranteed the right to legal aid for victims of torture, sexual offences, and children initiating proceedings to protect their rights.  The Law on Protection from Domestic Violence would be aligned with the Istanbul Convention, refining the definition of violence and granting victims individual rights.

    In the fight against human trafficking, amendments to the Criminal Code introduced abduction as one of the methods of committing the offence, as well as a non-punishment clause for victims.  For the first time, child trafficking was established as a distinct criminal offence. Montenegro had developed a comprehensive system covering the entire process of trafficking, from victim identification to full integration or reintegration into society.  This system was reinforced by strong and effective cooperation between competent State authorities and civil society organizations and steered by the Strategy for Combating Human Trafficking 2019–2024. Since its adoption, six annual action plans had been implemented.  Following evaluation of the strategy, a new Strategy for 2025–2028 was currently being drafted alongside an action plan.

    In 2023, Montenegro amended its Criminal Code to make the prosecution and execution of sentences for the criminal offence of torture no longer subject to any statute of limitations.  Sentencing guidelines had been tightened, particularly for offences committed by officials.  Additionally, activities had been carried out to improve accommodation capacities, living conditions, and the infrastructure of prison institutions.

    The implementation of the National Strategy for Gender Equality 2021-2025 and its accompanying action plans was progressing successfully, with a focus on promoting gender equality, strengthening the legal framework for gender policies, and preventing discrimination based on sex and gender.  The Ministry of Justice had significantly reinforced criminal law protections for journalists by introducing stricter penalties for attacks on journalists and other media workers.

    In 2024, the Ministry of Justice adopted key amendments to the Criminal Procedure Code, allowing for the unimpeded use of evidence gathered within the framework of the International Residual Mechanism for Criminal Tribunals in The Hague.  The Supreme State Prosecutor’s Office adopted the 2024-2027 Strategy for Investigating War Crimes, accompanied by an action plan.  As a result, new criminal cases were reopened concerning war crimes in countries such as Croatia, with the goal of delivering justice in cases linked to Montenegro.

    Questions by Committee Experts

    A Committee Expert said the Committee would like to receive more information on the various strategies mentioned in the report, as well as specific information on their implementation.  The State had launched a vast movement of reforms to strengthen human rights and the rule of law over the past ten years.  While the European Commission’s 2024 reports issued in the run-up to European Union accession were rather positive on issues including judicial independence, the fight against corruption, equality and non-discrimination, some of the reforms reportedly remained superficial, were not always coherent, and did not include civil society.  For example, there was no real human rights education and civic education was no longer compulsory.  Could information be provided on the inclusion of civil society in the reform process?  How was the second report prepared?  What measures were envisaged to strengthen the independence, impartiality and the effective and efficient functioning of the Ombudsperson?

    The issue of access to justice, truth and reparation for victims of serious human rights violations committed in the 1990s during the armed conflict in the former Yugoslavia was very complex.  The Committee took note of the information provided by the State on ongoing investigations and trials, however impunity seemed to persist in many aspects, which was concerning.  There was increased negationist discourse, including denial of the Srebrenica genocide.  The exercise of criminal justice was said to have been marked by numerous dysfunctions and obstacles, which cast doubt on the State’s willingness to establish responsibility for the commission of these war crimes and crimes against humanity.  There had been no proactive policy to establish criminal responsibility, not only for the direct perpetrators of war crimes but also for those responsible in the chain of command.  A low number of remains of disappeared people had been found and returned to their families.

    Could the State party shed light on the fight against denialist discourse and the policy of preserving memory, an important pillar of transitional justice?  What were the reasons for the persistent legal obstacles, including to the extradition to States requesting it?  What measures were being taken to strengthen the Special State Prosecutor’s Office to speed up investigations and prosecutions?  Was there any specialised training for judges in international human rights law?  What efforts were being undertaken to locate victims of enforced disappearance? Was enforced disappearance criminalised in domestic law in line with the United Nations Convention on Enforced Disappearance?

    A Committee Expert asked if the State party could provide details on the content of the training sessions organised by the Training Centre of the Judiciary, Public Prosecutor’s Office and the Human Resources Management Authority on the Covenant? How many judges, prosecutors, lawyers and parliamentarians had participated in these trainings?  Were these trainings compulsory or voluntary? Had there been specific modules focusing on the direct applicability of the Covenant in domestic law?  Could the State party provide specific examples of domestic courts directly invoking or applying the Covenant in their decisions? Were there any initiatives to raise awareness of the Covenant among the public, civil society or law enforcement officials?  How was it ensured that judges and legal practitioners actively implemented the Covenant in their professional practice?

    The Committee welcomed the State party’s efforts to establish a comprehensive reparations programme for victims of war crimes, which had led to financial compensation for nearly 200 cases up to September 2018 and more than 60 additional decisions from 2018 to 2022.  However, had the State party developed a comprehensive reparations programme that included restitution, rehabilitation, satisfaction and guarantees of non-repetition?  If such a programme had been drawn up, would these measures also be offered retroactively to victims who had already received financial compensation but who had not had access to these types of measures?  Had victims been provided with legal assistance to file their claims for reparations and, if not, did the Government plan to provide such assistance?  What measures were in place to ensure legal and comprehensive support for victims and their families?  What safeguards had been put in place to ensure that such crimes did not happen again? What steps have been taken to ensure that victims of war crimes in vulnerable situations had equal access to justice and redress mechanisms?

    Another Expert said the Committee had learned that in Montenegro, corruption was perceived as an aspect of great concern for citizens.  What concrete measures had been put in place to ensure that cases of corruption by high-level officials resulted in appropriate convictions and penalties?  What measures were being implemented to strengthen the effectiveness of the Anti-Corruption Agency to ensure that it was not pressured by political influences?  In 2022 and 2023, accusations against a former President of the Supreme Court and a former President of the Commercial Court, as well as two high-ranking prosecutors, highlighted the possible penetration of organised crime into judicial structures.  The positive action that those unfortunate incidents generated attested to Montenegro’s progress in its fight against organised crime and corruption.  Was Montenegro planning to improve the mechanisms for monitoring and accountability of judges and prosecutors to avoid conflicts of interest and increase public confidence in the judiciary?  What were the real quantities recovered for corruption cases?  Did the company “13.Jul-Plantaže” pay all the compensation to which it was sentenced?  What efforts had been made to increase public education on corruption perception and prevention?

    What specific mechanisms were in place to monitor and evaluate the implementation of the Law on the Prohibition of Discrimination, particularly regarding discrimination against the Roma, Ashkali and Egyptian communities?  What measures had been taken to ensure the long-term sustainability of the enjoyment of decent housing for these groups, and to address the factors that led to Roma, Ashkali and Egyptian children dropping out of school? What steps were being taken to ensure the inclusion of these groups in high-level political positions and structures? In Montenegro, there was an increase in hate speech directed at minorities.  Was the State aware of this phenomenon?  What measures were being implemented to prevent, control and punish it?

    Another Committee Expert asked about the strategy to improve the quality of life of lesbian, gay, bisexual, transgender and intersex persons, implemented in the periods 2013-2018 and 2019-2023.  It was alleged that there was limited implementation of this Strategy and that most of the actions were carried out by civil society.  Could more information on the strategy and its results be provided? Could the Committee have more information on the draft Law on the Legal Recognition of Gender Identity Based on Self-Determination, the approval of which was initially scheduled for the end of 2023 and then delayed until the end of 2024?

    In July 2020, the Law on Civil Unions of Persons of the Same Sex was adopted and began to be implemented in July 2021.  Since then, more than 20 civil unions had been registered.  Could the delegation comment on information that amendments to the regulations necessary for the proper implementation of the Law had not been made?  What measures had the State party taken to investigate attacks on lesbian, gay, bisexual, transgender and intersex persons and punish those responsible?  What was being done to prevent these from reoccurring?

    What had the Strategy for the Execution of Criminal Sanctions 2023-2026 achieved?  Did changes to the Criminal Code bring its definition of torture in line with that of the Convention Against Torture?  Was the Istanbul Protocol being properly applied in places of deprivation of liberty?  It had been alleged that the medical reports issued in these facilities did not properly document traces of torture or ill-treatment in the manner envisaged in the Protocol.  Why was this the case?  Was it due to a lack of staff?  Could the delegation provide updated official figures on the criminal investigations carried out and their results, including the number of officials convicted, for cases of torture and ill-treatment during the period covered by the report?

    A Committee Expert said the State Party had made notable progress in addressing violence against women, including adopting the Protocol on Prevention and Treatment in Cases of Domestic Violence and the National Plan for the Implementation of the Istanbul Convention (2023-2027), as well as amending its Criminal Code to introduce new offences such as stalking and enhanced penalties for domestic violence. Despite these advances, significant gaps in implementation remained.  Could the delegation provide updated data on the classification and prosecution of violence against women, particularly distinguishing between misdemeanours and criminal offences?  What measures were in place to ensure that legal reforms translated into effective enforcement and that penalties reflected the severity of the crimes? What reforms had been undertaken to eliminate harmful usage of confrontation techniques?

    Reports indicated that between 2020 and 2024, four out of six femicides involved victims who had previously sought help.  It was noted with satisfaction that there were plans to recognise femicide as a separate criminal offence.  What were the plans to ensure successful implementation of such a law?  While the State Party had established shelters and helplines for domestic violence victims, these services remained underfunded and insufficient.  Could the delegation provide updated figures on current shelter capacity and measures taken to ensure adequate and sustainable funding for these services? Could the delegation elaborate on plans to expand specialised services, such as psychological and legal assistance, across all regions?  Could an update be provided on the full implementation of the sex offender registry and the enforcement of post-sentence monitoring measures?  What were the main challenges in implementing the 2017-2021 Strategy on Prevention and Protection of Children from Violence and how were these challenges being addressed in the 2025-2029 Strategy? What legislative and policy measures were in place to combat online grooming and digital exploitation of children? How was it ensured that child victims of violence received adequate support?

    Responses by the Delegation 

    The delegation said upon the initiative of the non-governmental organisation Human Rights Action, a new criminal offence of enforced disappearance had been introduced and would be recognised as an offence in the Criminal Code.  The Law on the Prevention of Corruption was being amended, and two-thirds of recommendations from the civil sector had been accepted in this regard.  In Montenegro, there had been three Federal Governments over the past three years, which had led to a large number of decisions enacted in a short period of time.  There had been no intention to leave the civil and non-governmental organisation sector aside.  It was common that the most senior members of Government made efforts to memorialise the day of the Srebrenica genocide.  Sometimes, there were inappropriate statements made. However, it was hoped there would be less of these situations in the future and such statements would be sanctioned when made during elections.  There had also been a resolution adopted in Parliament on the genocide in Srebrenica.

    There would no longer be impunity for war crimes in Montenegro and proactive action had been taken in this regard.  Cases which had been finalised would be reopened, and thoroughly examined.  The strategy to combat war crimes was adopted in June 2024, which had resulted in four cases previously considered to be finalised being reopened.  In addition to this, the Special Case Prosecutor Service would look into other cases which had ended in a final judgement.  The Criminal Procedure Code was amended in June 2024, which had resulted in the inditement of a person for acts against humanity.  Two criminal cases were currently before the courts for alleged war crimes committed on the territory of Bosnia and Herzegovina. These cases were treated as a priority and were given special consideration by judges.  All victims of war crimes and their families were guaranteed access to justice and reparations.  Concrete examples could be provided of cases where courts had already awarded damages.

    In 2024, meetings had been held with the Chief Prosecutor in The Hague, and an initiative had been implemented to ensure training for Montenegro’s judges and prosecutors, based on the practices of The Hague.  Montenegro had signed the Ljubljana Hague Convention on war crimes last year.

    In 2023, the Criminal Code was amended to define the actions which constituted the criminal offence of domestic violence, as well as those who could receive safeguards under the law.  Sanctions for this offence were also increased and verbal threats were criminalised. A mandatory instruction was also adopted, mandating all prosecutors to act proactively in cases of domestic violence and to apply the Istanbul Convention.  A coordinator had been appointed at the level of the Supreme State Prosecutor and across local offices, providing periodic reporting and ensuring the speedy administration of justice.  Some 622 final judgements had been enacted on domestic violence cases in 2024, with the majority being convictions.

    There had been 364 applications for legal aid last year, and 318 of those cases were granted. A campaign had been developed to increase awareness of the availability of legal aid for all victims of domestic violence.  There were also information bulletins on trafficking in human beings available in five languages at legal aid clinics.

    Femicide was a serious, complex and tragic occurrence which needed to be tackled through various sectors.  Monitoring this criminal offence was a key challenge for Montenegro institutions. Special focus was devoted to victims, survivors and surviving family members.  In one case of femicide, the offender had been sentenced to 40 years imprisonment.

    The Judicial Council recently appointed ten judges of the High Court, which was a positive step forward.  The procedure was now simplified for recruiting new officers in the Anti-Corruption Agency.  There were now sixteen prosecutors in the Special Prosecutor’s Office, compared to six a few years ago.  The Centre for Training of Judges and Prosecutors tailored their training programmes annually.  Through the legislation harmonised with the Covenant, Montenegro aimed to implement the top international standards, including those enshrined within the Covenant.

    The Ministry of Human and Minority Rights focused on the protection of vulnerable groups, and the prevention of discrimination and inequality.  There was now a new strategy in place until 2028, focusing on the legislative framework.  This year, two million euros had been allocated for achieving non-governmental organisations’ projects.  During the last Pride event, the organisers had commended the Ministry for its contribution.  The Ministry was currently working on four important laws which addressed discrimination against the lesbian, gay, bisexual, transgender and intersex community, defined hate speech, and the forms of punishable behaviour, among other elements.

    Official political representatives and the public shared the view that forced sterilisation and removal of reproductive organs was an inhumane practice which the State needed to do away with. A law had been developed in this regard, which would be enacted in the first quarter of 2025.

    Work was being done to harmonise laws regarding the judiciary and healthcare.  The new law on protecting human rights and freedoms would ensure the Ombudsman would receive “A” status and be in line with the Paris Principles.  There had been imprisonment terms of between four to six months for those who committed attacks against transgender people.  In most cases, courts primarily referred to the European Convention of Human Rights, thereby invoking relevant international standards.  There had also been references to the Convention on the Elimination of Discrimination Against Women.  International treaties had supremacy over domestic legislation. 

    Pride events took place in Montenegro’s capital each year.  Last year, the event was held the day before an important local election. In the past, this could have been seen as an opportunity to radicalise the environment, however the event was held in complete peace.  It was hoped this would continue, and that the Pride Festival could be an event of freedom.

    There was zero tolerance for any form of torture and any officer reported was promptly investigated. In 2024, there were 21 cases against 38 police officers, with four resulting in convictions.

    Follow-Up Questions by Committee Experts

    An Expert asked about changes that the State party had observed regarding perceptions of stereotypes. The Committee was pleased that there were awareness campaigns and education initiatives around child marriages, but it was not clear if there had been a documented fall in child marriage. There had been legislative changes for the participation of women; had they given rise to the political participation of women in senior positions or in the Parliament?  When would the next parliamentary elections be held?  Would the State seek to ensure female representation was achieved?  What had been done to monitor and prevent selective abortion practices?

    A Committee Expert said the bill of law on gender determination could be adopted this year. When would it enter into force? Could more information on the restrictions in the bill be provided?  The medical reports issued in detention centres did not faithfully report on allegations of torture following instructions contained in the Istanbul Protocol.  Could the delegation elaborate on this?

    Another Committee Expert asked whether a national mechanism responsible for enacting the recommendations of United Nations treaty bodies existed in Montenegro.

    A Committee Expert asked what was being done to strengthen the institution of the Ombudsperson.

    Another Expert asked if more information could be provided on measures to combat violence against children.

    Responses by the Delegation

    The delegation said there were many politicians who believed that there needed to be a mandatory quota of 50 per cent of women represented in politics.  This was now in the stage of negotiations.  Women were the most active within the judiciary and the State was proud of this.  There were 169 female judges within the Montenegro judiciary, accounting for 64 per cent of all judges.  An association had been established to promote the role of women in the judiciary.

    The Supreme Court had supported analysis of the data, politics and practices in the fight against the exploitation of children.  One of the recommendations of this analysis was for the Supreme Court to adopt guidelines on assessing the trust environment, which would be implemented in all cases of violence against children, including cases of online violence. Courts avoided secondary victimisation of children.  Montenegro foresaw implementation of the Barnahus model, with the support of the United Nations Children’s Fund and the European Union. 

    Parliament made efforts to raise awareness on gender equality issues and to introduce its own gender equality mechanisms.

    ### Day 2

    In 2024, the Government adopted a strategy for the protection of children against violence for 2025 to 2029, promoting a zero tolerance of violence against children. The State party planned to implement recommendations from the Global Status Report on Violence Against Children, and United Nations mechanisms under the strategy, which also aimed to improve the legislative framework and change conservative societal norms that denied children rights.

    The national mechanism for the prevention of torture monitored torture at all levels, including in places of detention.  The State party had accepted Universal Periodic Review recommendations and had established a body for their implementation.

    There were restrictions within the law on self-determination of gender identity, but these were necessary to protect the rights of families.  The law was applicable to Montenegro nationals only and had been well-received by members of the lesbian, gay, bisexual, transgender and intersex community.

    The State party had mechanisms to prevent the misuse and abuse of laws on child marriage. There were exceptions allowing for child marriage, but several conditions needed to be fulfilled for such marriages to be permitted.  In all other cases, child marriage was criminalised.

    The mechanism for the protection of privacy rights in the health sector protected the privacy of patients.  The Government could not access certain information on health cards, such as information on surgeries and abortions.  The Government carried out awareness raising campaigns aiming to stop the practice of selective abortions.

    New legislation was being developed that aimed to bring the Office of the Ombudsman in line with the Paris Principles.

    Questions by Committee Experts

    A Committee Expert said a deinstitutionalisation strategy had been adopted to tackle overcrowding in psychiatric hospitals. Had the Government devoted sufficient resources to the strategy, and did it promote community care?  Detention facilities in police stations reportedly lacked natural light and did not have open-air spaces.  What measures were planned to address this situation?

    One of the judges of the Constitutional Court had reportedly been forced to resign due to a decision that was allegedly not in line with the Constitution.  Was the independence of judges guaranteed by law?  How did the State party prevent interference in the judiciary?  There was a lack of hearing chambers and judicial staff, contributing to a backlog in cases.  What measures were in place to address the backlog?  Did the 2024 changes made to the law on the council of the judiciary help judges with their work?  There were currently two Presidents of first instance courts who were on their third mandates, contrary to the law limiting tenures to two mandates. Why was this?  What measures were in place to raise awareness about the availability of free legal aid?

    Another Committee Expert welcomed the evaluation of the strategy for tackling trafficking in persons and the current strategy and national action plan.  Some improvements had been made in trafficking policies, but significant gaps reportedly remained, including in relation to the identification of victims. The anti-trafficking unit was severely under-resourced and the labour inspection unit lacked the capacity to identify labour exploitation effectively.  What measures would the State party take to strengthen the capacities of these units to better identify victims?  There was only one shelter for women victims of trafficking and none for men. Psychosocial assistance for victims was limited and no victims had received financial compensation.  What measures had the State party taken to separate child and adult victims in shelters, and to fund reintegration programmes for victims?

    The Committee welcomed training initiatives on data protection and privacy rights, but public awareness of privacy issues remained low.  What measures were in place to improve awareness and training for State officials on privacy issues?  How many privacy complaints had been investigated?  Were there plans to develop a data protection law?  One State official had been indicted for ordering the surveillance of 15 members of civil society.  The National Security Agency could access private data without court authorisation.  Were there plans to introduce judicial authorisation for such access?  What measures would the State party take to increase data protections and introduce remedies for victims of unauthorised data access?

    There had been 92 attacks against journalists between 2021 and 2024, a 200 per cent increase from the previous period.  What steps had been taken to enhance the safety of journalists, ensure accountability and prevent future attacks? What work was done by the commission monitoring attacks on journalists?  Recent legal amendments had strengthened protections for journalists, but strategic lawsuits against public participation remained a major concern. How would concerns related to these lawsuits be addressed?  Had the State party consulted with civil society concerning amendments to media regulations?

    A Committee Expert noted laws and other measures implemented to protect the rights of asylum seekers and refugees, which seemed to be in line with European Union laws and policies.  However, there were reports of increasing pushbacks at the border, deportation to unsafe countries and ill-treatment and detention of asylum seekers at the border for up to 28 days.  How was the State party preventing refoulement and protecting asylum seekers’ rights at the border?  Why were persons undergoing legal procedures related to statelessness not eligible for free legal aid?  Reported restrictions on access to healthcare and other State services for stateless persons were worrying.  The Committee welcomed that the State party had provided more than 16,000 Ukrainian refugees with temporary protection, but there were reports of Ukrainian children living in precarious circumstances and not being able to access State services. Could the delegation comment on these issues?

    The environment for non-governmental organizations was reportedly hostile, with some persons who criticised members of the Government or denounced corruption reportedly subjected to reprisals.  There was discourse related to a proposed “foreign agent law”, which would infringe freedom of expression.  Would such a law be implemented?  What measures were in place to protect whistleblowers?

    One Committee Expert welcomed the efforts of the State party to revise its law on access to information in line with international standards.  How did the law promote inclusion and accountability?  There was reportedly a growing trend in classifying public information as restricted.  What measures were in place to prevent the abuse of legislation on restricted information? What independent monitoring bodies could individuals appeal to regarding the restriction of information?

    What measures had the State party taken to ensure that the implementation of legislation on religious practices promoted freedom of religion?  Were the views of religious communities on these laws taken into account?  What measures were in place to punish hate speech, particularly Islamophobic hate speech?  What mechanisms existed to ensure transparency in the moderation of disputes between religious communities, and to protect the rights of minority religious communities?

    A Committee Expert noted progress in the appointment of the Anti-Corruption Agency, which had released reports related to the financing of electoral campaigns.  In the most recent election, regulations aiming to prevent corruption had reportedly not required candidates to record personal expenditure or spending on online advertising.  The Agency had issued 46 proposals to improve measures for the prevention of corruption. How did the State party ensure that these reforms were effectively implemented?  There had been accusations of vote buying; had these been investigated and the perpetrators punished?

    Responses by the Delegation

    The delegation said a strategy for the enforcement of criminal sanctions was in place to prevent acts of torture and other cruel, inhuman, or degrading treatment, and to promote the resocialisation of detainees.  Reforms had been developed to prevent the abuse of prisoners, in line with the recommendations of the European Court of Human Rights.  Construction had started on a special unit at a psychiatric hospital to resolve the issue of overcrowding.  The necessary resources would be devoted to ensuring the proper functioning of this unit.

    In 2023, based on the recommendations of the United Nations Subcommittee for the Prevention of Torture, the State party had approved measures to record the activities of police officers and the transfer of detainees, and to improve facilities for detainees in police stations. The deadline for implementing these was 2026.

    The Government had adopted a judicial reform strategy in 2024, which aimed to strengthen independence, accountability, transparency and trust in the judiciary.  Comprehensive legal reforms undertaken in 2024 had aligned the State’s judicial legislation with that of the European Union.  The Justice Minister was a member of the Judicial Council, but only had limited powers; he did not participate in matters concerning the election, discipline and dismissal of judges and could not be the Chair of the Council.  The participation of the Minister in this body did not affect the independence of the judiciary.  Future amendments to the Constitution would remove the Justice Minister from the Judicial Council.  When appointing Presidents of Courts, the Judicial Council took due care to assess whether the candidate had formerly been a President.  Recent reforms called for the work of Supreme Court judges to be evaluated every five years.  Restrictions were placed on the roles that judges could play when they were subject to disciplinary proceedings.  A working group had been set up to regulate the employment rights of judges, including their wages.  There were plans to increase the salaries of judges to ensure their independence.

    The Supreme Court had taken several actions to reduce the backlog of cases and to speed up proceedings.  There had been an increase in cases related to access to information; one individual had lodged 11,000 such cases.  The State party had streamlined proceedings related to the assessment of access to information cases.

    An amendment to the law on free legal aid was adopted in 2024.  It provided for free legal aid for vulnerable persons and persons who lodged claims in specified fields, including domestic violence and child protection.  The Government was implementing training to increase the number of legal aid practitioners, who needed to have specialised knowledge.  An awareness raising campaign on free legal aid had been implemented, targeting victims of domestic violence.  It had led to an increase in applications for legal aid.

    The Government was implementing several measures to combat trafficking in persons.  It had amended the Criminal Code to strengthen its response to trafficking. Abduction had been defined as a means of committing trafficking, and penalties for harming children and the sale of children had been increased.  In 2024, the Supreme State Prosecutor’s Office implemented measures to improve the identification of trafficking victims, including through information exchanges with neighbouring countries.  There had been an increase in the number of criminal offences of trafficking prosecuted in 2024.  Some 14 charges were issued against 25 individuals in 2024 for crimes of trafficking for the purposes of forced labour and sexual exploitation.

    The Ministry of Interior had undertaken several activities to strengthen the capacities of police officers and social and healthcare workers, to identify and support trafficking victims.  The system for the protection of victims of trafficking had been improved, thanks to the establishment of a State-funded shelter for women victims of trafficking in 2024.  Another shelter specifically prepared to house children was also operational; it had facilities for children with disabilities.

    Courts had made progress in prosecuting trafficking cases. Imprisonment terms of at least 15 years had recently been issued for two persons found guilty of trafficking, and other persons had received shorter prison terms for trafficking offences. When Montenegro entered the European Union, a law on compensation for victims of trafficking would enter into force. Guidelines had been issued to judges on compensation for victims.

    The Government strongly denied any allegations of violations of the rights of asylum seekers.  Border officials had received training on identifying trafficking victims.  A new law on the international protection of foreign nationals had been adopted in 2018, to increase the protection of their rights and the efficiency of the asylum process.  This law was fully aligned with relevant European Union Directives.  It ensured that decisions on asylum cases were reached within six months.

    A draft law on data protection had been prepared and was currently being assessed.  There were safeguards in place for the protection of personal data, including the personal data protection agency, which was mandated to regulate the processing of personal data by Government bodies.  The law on the National Security Agency required records to be kept of officers who had accessed personal data.  An amendment to the law had been approved by the Parliamentary Committee, which could visit the Agency and conduct checks on its practices.  The new law aimed to increase the transparency of the Agency’s activities.  Three charges had been lodged against the former Director of the Agency and another officer regarding unauthorised surveillance.  These cases were currently pending.

    The Government was promoting freedom of expression and strengthening legislation to protect journalists from attacks.  A commission dedicated to monitoring attacks against journalists had been set up and was operational.  It published reports and held regular meetings with officials on protection measures.  The law on the national public broadcaster was amended in 2024 to prevent undue political interference in its activities and in the election of its members, in line with the recommendations of the Venice Commission.  Prosecution teams had been set up to investigate the murders of three journalists.

    The Parliament organised public hearings and debates on proposed legislation, including the draft law on free access to information.  The Government would prioritise adoption of this law, which would promote transparency in access to information.

    Judges’ terms ceased when they reached statutory retirement age.  The Constitutional Court had failed to inform the Parliament that one of its judges had reached retirement age; the Parliament had issued a statement informing the Court of this fact.  The judge in question had filed a complaint with the Constitutional Court regarding her removal from the Court, but this had been rejected.

    The law on freedom of religious belief was amended in 2021; religious communities were not involved in this process, though they had been involved in drafting of the initial law.  The restitution of property to religious communities would be addressed in a forthcoming law.  Montenegro was committed to promoting the rights of religious communities.

    Follow-Up Questions by Committee Experts

    Committee Experts asked follow-up questions on the State’s response to reports of excessive use of force at the borders and an increase in pushbacks; the availability of legal aid for asylum seekers; how Montenegro prevented third-party actors from influencing political processes; reasons for delays in prosecuting hate crimes; measures to address the low representation of women in political bodies; plans to address the Supreme Court’s case backlog; measures to prevent delayed responses to requests for information; and steps taken to open inquiries into religious hate speech and to punish these acts.

    Responses by the Delegation

    The delegation said the State had not received any allegations of pushbacks at the border.  All individuals who entered the territory of Montenegro had the right to request international protection.  The law on international protection guaranteed legal aid for all asylum seekers, which was provided through a non-governmental organization, financed by the United Nations High Commissioner for Refugees.  Legal aid was also guaranteed by law for victims of trafficking, domestic violence and sexual offences.  The State party was developing case management mechanisms to address the Supreme Court’s case backlog.

    One deputy prime minister needed to be of an underrepresented gender.  A women’s club was in place, as well as a quota system, for the management boards of public companies.

    Criticism of public officials was permitted, as long as it did not constitute hate speech.  A law was being drafted that would implement sanctions for hate speech. The Government sought to lift the immunity of one mayor who had discriminated against a religious group in public speeches, so that he could be prosecuted.

    A committee had been set up to develop amendments to legislation on elections and campaign financing.  Its work had been delayed, but it was due to develop this legislation by the end of this year.  Its membership had also been expanded.

    The fourth strategy on deinstitutionalisation was adopted in December 2024, along with its action plan.  Funding was provided for social care under the strategy, which envisaged licencing and training of social service providers, and setting norms and standards for social work.

    Complaints of hate speech against religious communities were handled by the Ombudsperson’s Office.  The State party was currently negotiating agreements with several religious communities.

    Although public statements related to laws on foreign agents had been made, no draft laws on foreign agents had been submitted to Parliament.  The State party promoted freedom of expression.

    Closing Statements

    BLAGOJE GLEDOVIĆ, Director General of the Directorate for the International Cooperation and International Legal Aid, Ministry of Justice of Montenegro, and alternative head of the delegation, said the exchange with the Committee had been lively and exhaustive.  Over the reporting period, the State party had undertaken several reforms to promote civil and political rights and to meet the requirements for accession to the European Union.  Significant efforts had been made by public servants and civil society to achieve Montenegro’s membership of the Union.  Montenegro remained committed to the implementation of the Covenant through national legislation and all other available measures.  The State party looked forward to receiving the Committee’s recommendations, which it would carefully consider and strive to implement.

    CHANGROK SOH, Committee Chairperson, thanked the delegation for engaging in dialogue with the Committee.  Discussions had covered a wide range of topics related to the implementation of the Covenant by the State party, highlighting the progress made and challenges faced.  The Committee was committed to fulfilling its mandate to ensure the highest standard of implementation of the Covenant in Montenegro.  Mr. Soh thanked all persons who had contributed to the dialogue.

     

    Produced by the United Nations Information Service in Geneva for use of the media; 
    not an official record. English and French versions of our releases are different as they are the product of two separate coverage teams that work independently.

     

     

    CCPR25.002E

    MIL OSI United Nations News –

    March 6, 2025
  • MIL-OSI USA: Attorney General James Issues Diversity, Equity, Inclusion, and Accessibility Guidance for Schools

    Source: US State of New York

    EW YORK – New York Attorney General Letitia James today led a coalition of 14 attorneys general in issuing guidance to K-12 schools, colleges, and universities outlining the benefits, legality, and importance of common diversity, equity, inclusion, and accessibility (DEIA) policies and practices in education. The guidance comes in response to concerns expressed by some educational institutions following an executive order and a U.S. Department of Education (DOE) “Dear Colleague” letter threatening schools that continue to uphold DEIA policies and programming. In the guidance issued today, Attorney General James and the coalition remind educational institutions and entities that their lawful efforts to seek and support diverse, equitable, inclusive, and accessible educational experiences cannot be rendered illegal by an executive order or a letter from DOE – neither of which can make or change the law.

    “The administration cannot ban diversity, equity, inclusion, and accessibility efforts with a ‘Dear Colleague’ letter,” said Attorney General James. “Schools and educational institutions can rest assured that they are well within their legal rights to continue building inclusive learning environments for their students. My office will always stand up for the rule of law and defend New Yorkers from threats.” 

    The Trump administration, in its efforts to dismantle diversity initiatives, has sought to misinterpret and improperly expand the U.S. Supreme Court’s narrow ruling in Students for Fair Admissions, Inc. v. President and Fellows of Harvard College (SFFA). In their guidance, the attorneys general clarify that the administration’s recent executive order and communications from DOE do not change the law with respect to higher education policies.

    The attorneys general also emphasize that higher education institutions are well within their rights to continue to seek and cultivate diverse student bodies and equitable outcomes for students. In the guidance, the coalition clarifies that while SFFA limited the ability of higher education institutions to consider an applicant’s race as a “plus” factor for admission, schools can still work to diversify their applicant pools and student bodies through recruitment efforts. The guidance also notes that institutions do not have to ignore race when identifying prospective students for outreach and recruitment programs, provided such programs do not give students preference based on race and that all students have the same opportunity to apply and compete for admission. Attorney General James and the coalition assure schools that they can continue to target outreach to potential applicants based on a wide range of characteristics, such as academic interests, geographic residency, financial means and socioeconomic status, family background, and parental education level. 

    The attorneys general are also encouraging K-12 schools to strive for a school climate where all students feel safe, supported, respected, and ready to learn. School leaders can do this by reviewing their current practices to ensure that their district complies with anti-discrimination, anti-bullying, and civil rights laws, and by adopting programs and policies that incorporate best practices and meet the needs of their communities. In addition, the attorneys general identify steps schools can take to ensure that all students, including those from historically underrepresented backgrounds, are prepared for college and careers. 

    Joining Attorney General James in issuing this guidance are the attorneys general of California, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Minnesota, New Jersey, Nevada, Oregon, Rhode Island, Vermont, and the District of Columbia. 

    MIL OSI USA News –

    March 6, 2025
  • MIL-OSI Economics: Ericsson, Qualcomm and Thales Alenia Space reach milestone in space-based connectivity

    Source: Thales Group

    Headline: Ericsson, Qualcomm and Thales Alenia Space reach milestone in space-based connectivity

    • Ericsson, Qualcomm Technologies, Inc., and Thales Alenia Space have partnered on 5G NR non terrestrial networks (NTN) technology since 2022
    • Demonstration validates key technical functionalities essential for robust satellite communication integration
    • It paves the way towards the seamless integration of terrestrial network (TN) and NTN, laying the groundwork for commercial deployment

    The integration of traditional mobile networks with satellite mobile networks – and the related possibility of truly global connectivity across oceans and continents – has moved a step closer following a significant technology achievement by Ericsson (NASDAQ: ERIC), Qualcomm Technologies, Inc. and Thales Alenia Space.

    The three partners combined expertise in a French test laboratory to successfully connect a 5G standards-based non terrestrial network call with a simulated low earth orbit (LEO) satellite channel.

    5G Skytower LEO satellite ©Thales Alenia Space/ Briot

    In effect, the trial proved that an NR-NTN capable device would never be without mobile coverage where areas are served by either terrestrial or non-terrestrial networks. In other words, if NTN covers an area in the middle of an ocean or deep forest – currently impossible to cover with terrestrial networks – then a device would be able to connect, via mobile connectivity alone, with any other device or service on the mobile network without the need for additional satellite signal receiving equipment, such as a dish. 

    Support applications could include high-definition voice calls and real-time video streaming services.

    The achievement is a significant milestone on the way to non-terrestrial networks becoming a commercial reality. The collaboration launched in 2022 was, at the time, the world’s first publicly announced collaboration for 5G NTN based on 3GPP standards. 

    Fredrik Jejdling, Executive Vice President and Head of Business Area Networks, at Ericsson, says: “This successful 5G non-terrestrial network call represents not just a technological breakthrough but also showcases the practical viability of integrating satellite technology within existing terrestrial frameworks. Ericsson is committed to advancing ubiquitous connectivity, and our collaborative effort with Thales Alenia Space and Qualcomm Technologies will help ensure that future communication systems are more inclusive, resilient, and globally accessible. By leveraging NTN technology, we aim to bridge the digital divide and bring reliable communication to every corner of the world.”

    John Smee, Senior Vice President, Engineering, Qualcomm Technologies, Inc., says: “Our collaboration with Ericsson and Thales Alenia Space is crucial in leveraging 3GPP standards for satellite communications, helping to ensure that 5G connectivity is universally accessible to 5G smartphone users. Qualcomm Technologies remains committed to enhancing chipset capabilities that support the seamless integration of 5G non-terrestrial networks and terrestrial networks.”

    Hervé Derrey, CEO of Thales Alenia Space, says: “For years, Thales Alenia Space has been at the heart of all initiatives aimed at seamlessly integrating satellite communications in the 5G network infrastructure – including standardization with 3GPP – and takes 5G NTN standardized solutions into account in the design of its satellite payloads supporting either Broadband or Direct-To-Device (D2D) services. By combining Thales Alenia Space’s expertise in space technologies with Ericsson’s leadership in 5G networks and Qualcomm Technologies’ advanced chipsets, we are making significant headway towards the seamless integration of terrestrial and NTN networks, to provide access to 5G services, anywhere and at any time.”

    Ericsson, Qualcomm Technologies, and Thales Alenia Space are committed to further refinement and development of 5G/6G NTN technologies, aiming to introduce and scale 5G NTN on the market and allow for a full set of services – from multi-orbit satellites including messaging, voice and data, to make seamless communication a reality for everyone, everywhere, and at any time. 

    More on the tech :

    The partners established a 3GPP-based end-to-end New Radio (NR) 5G non-terrestrial networks (NTN) call using a lab-emulated low earth orbit (LEO) satellite.
    The test explored critical components such as handling delays, Doppler effects, and ensuring seamless satellite handovers, which are crucial for maintaining communication integrity in satellite environments.

    About Ericsson:

    Ericsson’s high-performing networks provide connectivity for billions of people every day. For nearly 150 years, we’ve been pioneers in creating technology for communication. We offer mobile communication and connectivity solutions for service providers and enterprises. Together with our customers and partners, we make the digital world of tomorrow a reality. Ercisson 

    Ericsson France press contact: 
    Laetitia Suizdak:  laetitia.suizdak@ericsson.com   

    About Qualcomm:

    Qualcomm is enabling a world where everyone and everything can be intelligently connected. Our one technology roadmap allows us to efficiently scale the technologies that launched the mobile revolution – including advanced connectivity, high-performance, low-power compute, on-device intelligence and more – to the next generation of connected smart devices across industries. Innovations from Qualcomm and our families of Snapdragon and Dragonwing platforms will help enable cloud-edge convergence, transform industries, accelerate the digital economy, and revolutionize how we experience the world, for the greater good.     
    Qualcomm Incorporated includes our licensing business, QTL, and the vast majority of our patent portfolio. Qualcomm Technologies, Inc., a subsidiary of Qualcomm Incorporated, operates, along with its subsidiaries, substantially all of our engineering, research and development functions, and substantially all of our products and services businesses, including our QCT semiconductor business. Snapdragon, Qualcomm Dragonwing and Qualcomm branded products are products of Qualcomm Technologies, Inc. and/or its subsidiaries. Qualcomm patents are licensed by Qualcomm Incorporated. 
    Qualcomm is a trademark or registered trademark of Qualcomm Incorporated.

    About Thales Alenia Space:

    Drawing on over 40 years of experience and a unique combination of skills, expertise and cultures, Thales Alenia Space delivers cost-effective solutions for telecommunications, navigation, Earth observation, environmental management, exploration, science and orbital infrastructures. Governments and private industry alike count on Thales Alenia Space to design satellite-based systems that provide anytime, anywhere connections and positioning, monitor our planet, enhance management of its resources, and explore our Solar System and beyond. Thales Alenia Space sees space as a new horizon, helping to build a better, more sustainable life on Earth. A joint venture between Thales (67%) and Leonardo (33%), Thales Alenia Space also teams up with Telespazio to form the parent companies’ Space Alliance, which offers a complete range of services. Thales Alenia Space posted consolidated revenues of approximately €2.2 billion in 2023 and has around 8,600 employees in 8 countries with 16 sites in Europe. 
     

    MIL OSI Economics –

    March 6, 2025
  • MIL-OSI USA: Duckworth Reacts to Trump’s Joint Address to Congress

    US Senate News:

    Source: United States Senator for Illinois Tammy Duckworth

    March 04, 2025

    [WASHINGTON, D.C.] – Today, U.S. Senator Tammy Duckworth (D-IL) issued the following statement in reaction to President Donald Trump’s Joint Address to Congress, in which he outlined his harmful agenda that would benefit already-wealthy billionaires at the expense of middle-class Americans:

    “Donald Trump promised he’d lower costs for middle-class Americans, but clearly that was a lie he sold to get elected. In reality, we’re continuing to watch Trump and Elon Musk take a chainsaw to programs and services that middle-class families rely on—the same families Trump swore he’d protect—all while doing nothing to address the rising cost of eggs and groceries. Since day one, Trump has already damaged lifelines like Head Start, gutted cancer research, fired more Veterans than any President in our nation’s history and is making our country less safe by surrendering to Putin while abandoning our democratic partners and allies. Make no mistake: Trump and Musk will continue to ram through cuts to health care and critical programs that middle-class Americans depend on so they can fund tax breaks for already-wealthy billionaires. They don’t care about making government work better for families, they only want to make government work better for themselves. If Republicans won’t stick up for the middle class, Democrats will.”

    As part of her ongoing efforts to push back against Trump’s illegal funding freeze that continues to inflict needless chaos, confusion and financial pain on Head Start programs and the middle-class families they serve throughout Illinois, Senator Duckworth invited Lauri Morrison-Frichtl, Executive Director of the Illinois Head Start Association, as her guest to Trump’s Joint Address to Congress.

    “Leaders like Lauri Morrison-Frichtl are on the frontlines of Trump’s needless chaos—which is continuing to cause irreversible damage and jeopardize Illinois Head Start’s ability to serve thousands of children and families,” said Duckworth. “I was proud to invite Lauri Morrison-Frichtl to the Joint Address to remind middle-class Americans and this Administration just how critical Head Start services are—not only for working parents trying to make ends meet, but also for the next generation of students. We cannot let Trump and Republicans tear down this lifeline for families in order to fund tax cuts for billionaires—full stop.”

    With over 37 years of experience with Head Start, Executive Director Morrison-Frichtl is a steadfast leader and advocate for the wellbeing of the thousands of children and families in our state who face the most significant barriers to achieving success in school and in life. Additionally, nearly 70% of Illinois Head Start and Early Head Start parents are in the workforce and rely on Head Start’s programs in order to go to their jobs—allowing them to support their families and contribute to our economy. An official portrait photo of Illinois Head Start Executive Director Lauri Morrison-Frichtl can be found on the Senator’s website.

    -30-



    MIL OSI USA News –

    March 6, 2025
  • MIL-OSI USA: Duckworth, Cohen Renew Push to Help Improve School Bus Safety and Protect Our Kids

    US Senate News:

    Source: United States Senator for Illinois Tammy Duckworth

    March 04, 2025

    [WASHINGTON, D.C.] – Today, U.S. Senator Tammy Duckworth (D-IL)—a member of the U.S. Senate Committee on Commerce, Science and Transportation (CST)— and U.S. Representative Steve Cohen (D-TN-09) reintroduced legislation to help keep our kids safe as they travel to and from school. The School Bus Safety Act of 2025 would implement safety recommendations from the National Transportation Safety Board (NTSB) to make school buses safer by ensuring there are seat belts at every seat and buses are equipped with safety measures like stability control and automatic braking systems. The bill would also create a grant program to help school districts modify school buses to meet these important safety modifications.

    “No parent should have to worry about the safety of their children when they get on a school bus—but school buses often lack seat belts and other basic safety equipment that every parent demands,” said Senator Duckworth. “Nothing is more important than protecting our children, which is why I’m proud to be reintroducing the School Bus Safety Act with Rep. Cohen to help prevent school bus accidents, make accidents less severe and implement other commonsense safety recommendations that will save lives.”

    “There is no more precious cargo than children entrusted by their parents for a bus ride to school,” said Rep. Cohen. “The commonsense measures recommended by the NTSB and called for in this legislation will save young lives. I am pleased to reintroduce this legislation with Senator Duckworth to make school buses across the country safer while helping financially strapped school districts modify their school bus fleets to meet the new specifications. We’ve seen too many deaths and serious injuries in school bus accidents in Tennessee and elsewhere, and it is past time we act to protect young lives.”

    The School Bus Safety Act would require the Department of Transportation issue rules requiring all school buses to include:

    • A 3-point safety belt, which includes a seat belt across a lap as well as a shoulder harness to help protect passengers by restraining them in case of a collision.
    • An Automatic Emergency Braking System, which helps prevent accidents and crashes by detecting objects or vehicles ahead of the bus and braking automatically.
    • An Event Data Recorder (EDR) that can record pre- and post-crash data, driver inputs, and restraint usage and when a collision does occur.
    • An Electronic Stability Control (ESC) System that will use automatic computer-controlled braking of individual wheels to assist the driver remain in control of the vehicle.
    • A Fire Suppression System, which addresses engine fires.
    • A Firewall that prohibits hazardous quantities of gas or flame to pass through the firewall from the engine compartment to the passenger compartment.

    According to the National Highway Traffic Safety Administration (NHTSA) 1,082 people have died in school transportation-related crashes between 2013 and 2022, which saw a total of 976 crashes.

    Full text of the legislation can be found on Senator Duckworth’s website.

    Duckworth has long pushed for improving school bus safety, originally introducing this legislation in 2018 and again in 2023.

    -30-



    MIL OSI USA News –

    March 6, 2025
  • MIL-OSI USA: Duckworth, Durbin Meet with Illinois State Association of Counties

    US Senate News:

    Source: United States Senator for Illinois Tammy Duckworth

    March 05, 2025

    {WASHINGTON, D.C.] – U.S. Senator Tammy Duckworth (D-IL) and U.S. Senate Democratic Whip Dick Durbin (D-IL)  yesterday met with representatives from the Illinois State Association of Counties to discuss the impact of the Trump Administration’s funding freeze on Illinois.  During this meeting, Durbin and Duckworth heard directly from county leaders about affected transportation and infrastructure projects.  Last week, Durbin and Duckworth joined Illinois leaders to send a letter to the White House Office of Management and Budget (OMB) Director Russell Vought demanding the release of the approximately $1.88 billion in funding being illegally withheld from Illinois taxpayers despite the funding being appropriated by Congress and the U.S. courts intervening with the freeze.

    The Senators and county leaders also spoke about House Republicans’ proposed $880 billion in Medicaid cuts to compensate for President Trump’s tax cut for billionaires.  If congressional Republicans pass these Medicaid cuts, 3.4 million Illinoisans on Medicaid, including nearly 1.5 million children, could lose access to critical health care. 

    “Whether it’s illegally freezing funds or backing a bill to gut Medicaid, Trump is hurting the same families he swore to protect by jeopardizing programs they rely on,” Duckworth said. “Worse yet, Republicans are planning to put Social Security, Medicare and Medicaid on the chopping block in order to pay for tax cuts for billionaires.  I’m glad I had the chance to meet with the leaders of the Illinois State Association of Counties alongside Senator Durbin to discuss how Trump’s chaos is impacting communities across Illinois. We’ll keep pushing back and sticking up for families.”

    “The decisions made in the White House and on Capitol Hill have real impacts in Illinois.  The President’s decision to freeze promised federal funds to Illinois is jeopardizing critical transportation and infrastructure projects in Illinois, further harming our economy and threatening Illinoisans’ jobs.  Meanwhile, congressional Republicans are scheming to cut health care for 3.4 million Illinoisans on Medicaid to give tax breaks to billionaires,” Durbin said.  “Senator Duckworth and I heard directly from members of the Illinois State Association of Counties today about the impacts they’re seeing in their home counties.”

      

    Photos of the meeting are available here.

    Counties represented at the meeting included:

    • Cook County
    • Kane County
    • Lake County
    • McHenry County
    • Peoria County
    • Stephenson County
    • Will County

    -30-



    MIL OSI USA News –

    March 6, 2025
  • MIL-OSI USA: Sen. Moran Response to President Trump’s Address to Congress

    US Senate News:

    Source: United States Senator for Kansas – Jerry Moran

    WASHINGTON – U.S. Senator Jerry Moran (R-Kan.) released the following statement in response to President Trump’s address to a joint session of Congress:

    “In his address to Congress, President Trump outlined his plans to bolster the economy, strengthen national security and protect our southern border. The President has already reinstated commonsense border policies to make certain our border patrol agents have the tools and authority they need to apprehend illegal migrants, arrest drug traffickers and stop fentanyl from entering our country. Congress must work to pass legislation that provides the resources needed to sustain a secure border through permanent infrastructure, increased manpower and cutting-edge technology.

    “Kansans and Americans are facing many challenges, and addressing these challenges will require us to work together to find solutions and make certain all Americans can achieve the American Dream.”

    MIL OSI USA News –

    March 6, 2025
  • MIL-OSI Asia-Pac: Director of Hong Kong and Macao Work Office of CPC Central Committee and Hong Kong and Macao Affairs Office of State Council meets CE in Beijing (with photo)

    Source: Hong Kong Government special administrative region

    Director of Hong Kong and Macao Work Office of CPC Central Committee and Hong Kong and Macao Affairs Office of State Council meets CE in Beijing (with photo)
    ******************************************************************************************

    ​The Director of the Hong Kong and Macao Work Office of the Communist Party of China Central Committee and the Hong Kong and Macao Affairs Office of the State Council, Mr Xia Baolong, met the Chief Executive, Mr John Lee, who was in attendance at the opening meeting of the third session of the 14th National People’s Congress (NPC), in Beijing today (March 5).     Mr Xia said that the Central Government remains committed in fully and faithfully implementing the principle of “one country, two systems”, and will continue to fully support Hong Kong and Macao in integrating into national development. Mr Xia noted that under the leadership of Mr Lee, the governance team of the Hong Kong Special Administrative Region (HKSAR) has been resolutely implementing the guiding principles of important speeches by President Xi Jinping on Hong Kong and Macao affairs and the Central Government’s strategic decisions. Mr Xia said that by proactively identifying, adapting to, and driving change, the team has firmly safeguarded high-level security and strenuously promoted high-quality development, while uniting all sectors of society to focus on economic growth, pursue development and advance infrastructure, achieving good results in the areas. Mr Xia expressed his confidence that the HKSAR Government and the Hong Kong community will seize opportunities, pursue reforms and endeavour to fully leverage the institutional strengths of “one country, two systems”, consolidate and enhance Hong Kong’s status as an international financial, shipping and trade centre, establish an international hub for high-calibre talents, and in turn expedite the city’s transition from stability to prosperity, making greater contributions to the building of a great country in all respects and advancing toward national rejuvenation through Chinese modernisation.     Mr Lee expressed his gratitude for the Central Authorities’ support and recognition of the efforts of the HKSAR Government. He also expressed his gratitude for Mr Xia’s guidance and care for the HKSAR. Mr Lee said that 2025 marks the conclusion of the 14th Five-Year Plan, and is an important year in further deepening reform comprehensively. He said that since assuming office, the current term of the HKSAR Government has striven to consolidate and realise the positioning of the “eight centres” under the 14th Five-Year Plan, proactively attracting businesses and talent while expanding economic and trade networks. The Government has introduced multiple reform measures, including over 600 policy initiatives spanning diverse sectors outlined in last year’s Policy Address, specially themed “Reform for Enhancing Development and Building Our Future”. These measures aim to deepen reforms and uncover new economic growth areas, while upholding the city’s principle and embracing innovation. Mr Lee said that the measures will consolidate Hong Kong’s status as an international financial, shipping and trade centre, establish an international hub for high-calibre talents, accelerate Hong Kong’s development into an international innovation and technology centre, and advance such developments as the Northern Metropolis and the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone.     Mr Lee remarked that the HKSAR Government will continue to unite all sectors of society in driving innovation and reform, and better understand, respond to and embrace changes. Giving full play to its institutional strengths under the “one country, two systems” principle and unique strengths in internationalisation, Hong Kong will further strengthen its bridging role between the Mainland and the world, actively integrate into national development, and contribute to the Guangdong-Hong Kong-Macao Greater Bay Area development and the Belt and Road Initiative, telling the good stories of the country and Hong Kong. Mr Lee highlighted that in collaboration with the community, the HKSAR Government will earnestly study and implement the spirit of the third session of the 14th NPC and the third session of the 14th Chinese People’s Political Consultative Conference National Committee, foster unity, and achieve greater development for Hong Kong, thereby making greater contributions to the building of a great country in all respects and advancing toward national rejuvenation.     Deputy Director of the Hong Kong and Macao Work Office of the Communist Party of China Central Committee and the Hong Kong and Macao Affairs Office of the State Council Mr Wang Linggui, and the Director of the Chief Executive’s Office, Ms Carol Yip, also joined the meeting.

    Ends/Wednesday, March 5, 2025Issued at HKT 23:01

    NNNN

    MIL OSI Asia Pacific News –

    March 6, 2025
  • MIL-OSI Asia-Pac: Keynote speech by SITI at GSMA Ministerial Programme of Mobile World Congress 2025 in Barcelona (English only)

    Source: Hong Kong Government special administrative region

    Keynote speech by SITI at GSMA Ministerial Programme of Mobile World Congress 2025 in Barcelona (English only)
    ******************************************************************************************

    Following is the keynote speech by the Secretary for Innovation, Technology and Industry, Professor Sun Dong, at the Global System for Mobile Communications Association (GSMA) Ministerial Programme of the Mobile World Congress (MWC) 2025 in Barcelona, Spain on March 5 (Barcelona time): Distinguished speakers, guests, ladies and gentlemen,      Buenas tardes! Good afternoon! It is a privilege to join you all at the MWC Barcelona 2025, Europe’s pre-eminent mobile tech summit hosted in the fascinating city of Barcelona.           Renowned for its architectural brilliance and rich cultural tapestry, Barcelona is undoubtedly a beacon of creativity in Europe. More than ten thousand kilometers away, Hong Kong shares the same dynamic spirit and strong commitment to innovation. This brings me here today to share with you Hong Kong’s innovation and technology (I&T) landscape as well as opportunities that connect people around the world. Hong Kong: Our odyssey to be an International I&T Centre      Well known for the free, international and business-friendly environment, Hong Kong ranks first in Asia and third in the world in the Global Financial Centres Index. The success of this Asia’s World City is our spirit of embracing changes and evolving with times.           The theme of this year’s MWC Barcelona, “Converge, Connect, Create”, aptly encapsulates the key directions of Hong Kong’s new mission. We are racing to become an international I&T centre, as enshrined in our I&T Development Blueprint promulgated in 2022. We strive to perfect Hong Kong’s I&T ecosystem with conducive policies to support the development of strategic tech industries, including AI and robotics, life and health technologies, new energy and advanced manufacturing industries.           The Blueprint not only converges and connects our game plan on technological innovation and talent cultivation, but also creates new impetus to Hong Kong’s high quality development and enhances our citizens’ quality of life with day-to-day convenience brought about by technology innovation. Bridging the digital divide by building a Smart City and a Digital Inclusive Society      Hong Kong is among the world’s top 20 smart cities in the Smart City Index released by the IMD (International Institute for Management Development). One of the board development direction set out in our I&T Blueprint is to promote digital economy and develop Hong Kong into a smart city. Over the years, the Hong Kong Special Administrative Region Government has rolled out various measures to make Hong Kong a more advanced and livable smart city, such as developing new digital infrastructure, opening up public data, and enhancing government services by applying advanced technologies such as blockchain and IoT (Internet of Things).           Indeed, one of the best testimonies to a city’s I&T achievement is the degree of digitalisation. In Hong Kong, all submissions and payments to the Government have electronic options. More than three millions of people are enjoying the convenience and efficiency of accessing government services and online identity verification through a mobile application called “iAM Smart”. A corporate version of “iAM Smart”, nick-named CorpID, is upcoming too.      Known for the cultural diversity and international landscape, digital inclusiveness is an area that we take pride in. In Hong Kong, where the household broadband penetration rate and smartphone penetration rate are both approximately 97 per cent, the internet usage rate among Hong Kong citizens aged 65 and above rocketed, from 56 per cent in 2018 to 84 per cent in 2023, slightly ahead of the European rate of around 78 per cent.           Hong Kong’s life expectancy has seen a steady increase over the past half century, reaching 83 years for men and 88 years for women in 2023. As society becomes so digitally knitted and increasingly mobile, we recently launched the “Smart Silver” Digital Inclusion Programme for Elders, to address the challenges of an increasingly aging society. This programme fortifies our digital inclusive efforts by providing elders with community-based training and on-the-spot helpdesks to enhance elders’ knowledge on new digital technologies and support their navigation by common mobile applications. Hong Kong’s Research and Development (R&D) Excellence driving global I&T collaboration      Global collaboration is a necessity to tackle unprecedented challenges. Hong Kong is the only city in the world housing five of the world’s top 100 universities, providing a readily available pool of R&D capabilities, know-how and talent. These favourable conditions make possible many scientific and technological breakthroughs by harnessing cutting-edge innovations from both the East and the West.           You may wish to know that our flagship R&D initiative – InnoHK has built collaboration with more than 30 world-renowned universities and research institutes from 12 economies, set up a total of 30 research laboratories. Of these, 16 of them focus on AI and robotics-related technologies. Our goal is to converge top-notch researchers from all over the world to conduct world-class and impactful collaborative researches.      The vigorous development of AI is reshaping global economic landscape. Our AI Supercomputing Centre has just commenced operation, and the computing power will be ramped up gradually to 3 000 petaFLOPS this year. Newly announced in our annual Government Budget last week, we will earmark $1 billion Hong Kong dollars, equivalent to 120 million euros, for the establishment of the Hong Kong AI Research and Development Institute. Hong Kong stands ready to play a full role in promoting global I&T collaboration. Hong Kong: an Ideal Home to I&T enterprises and start-ups      In fact, Hong Kong stands in a prime location for I&T and business collaborations. With the distinctive advantages of “one country, two systems”, over 1 400 companies from outside Hong Kong have set up regional headquarters in Hong Kong, including some global tech giants. Our strategic location and unique role as a “super-connector” and “super value-adder” empower them to tap into the vast markets of Mainland China including the Guangdong-Hong Kong-Macao Greater Bay Area, the Asia-Pacific region and also the Belt-and-Road countries.           Hong Kong is also an ideal home for breeding I&T start-ups. According to the Global Start-up Ecosystem Report 2024, Hong Kong ranks first in Asia and third globally among the top 100 emerging ecosystems. As of 2024, the number of start-ups in Hong Kong has surged to about 4 700, reaching the record highs.           Our two I&T flagships, the Hong Kong Science and Technology Parks Corporation and the digital tech-oriented Cyberport, provide robust support for start-ups through various incubation programmes. They also offer opportunities for start-ups to participate in I&T mega events, which include, of course, the MWC Barcelona. If you are interested in discovering Hong Kong’s vibrant I&T scene, be sure to visit the Hong Kong Tech Pavilion at Hall 6 and speak to our tech ventures there. Concluding remarks      Ladies and gentlemen, I hope my sharing just now could vividly show the colours of Hong Kong’s I&T scene, just like the beautiful city of Barcelona. Seeing is believing. I welcome you all to Hong Kong to explore more on our robust digital infrastructure, smart city initiatives and digital economy development.           Before I close, I would like to extend my heartfelt thanks to GSMA for inviting me to the Ministerial Programme. I wish everyone here a fruitful exchange. Gracias! Thank you!

    Ends/Wednesday, March 5, 2025Issued at HKT 23:25

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    MIL OSI Asia Pacific News –

    March 6, 2025
  • MIL-OSI USA: NEWS RELEASE: DBEDT REDUCES HAWAI‘I ECONOMIC GROWTH RATE TO 1.7 PERCENT FOR 2025

    Source: US State of Hawaii

    NEWS RELEASE: DBEDT REDUCES HAWAI‘I ECONOMIC GROWTH RATE TO 1.7 PERCENT FOR 2025

    Posted on Mar 5, 2025 in Latest Department News, Newsroom

    STATE OF HAWAIʻI

    KA MOKU ʻĀINA O HAWAIʻI

    DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT AND TOURISM

    KA ʻOIHANA HOʻOMOHALA PĀʻOIHANA, ʻIMI WAIWAI A HOʻOMĀKAʻIKAʻI

     

    RESEARCH AND ECONOMIC ANALYSIS DIVISION

     

    JOSH GREEN, M.D.
    GOVERNOR

    KE KIAʻĀINA

     

    JAMES KUNANE TOKIOKA

    DIRECTOR

    KA LUNA HOʻOKELE

     

    1. EUGENE TIAN

    CHIEF STATE ECONOMIST

     

    DBEDT REDUCES HAWAI‘I ECONOMIC GROWTH RATE TO 1.7 PERCENT FOR 2025

     

     

    FOR IMMEDIATE RELEASE

    March 5, 2025

    The Department of Business, Economic Development and Tourism (DBEDT) released its first quarter 2025 Statistical and Economic Report today. In the report, DBEDT adjusted its economic growth projections for 2025 to 1.7 percent, lower than the 2.0 percent projected in the previous quarter. The downward adjustment was mainly due to the expected slowdown in tourism growth, higher projected consumer inflation and increasing policy uncertainty at the national and international levels. Economic growth is expected to reach 2.0 percent in 2026 and to continue steady growth to 1.8 percent in 2028. The labor market is expected to remain stable, with low unemployment.

     

    The resilience of Hawaiʻi’s economic growth in the next few years will rely on the strong performance of construction, real estate, health care, professional services, and the continued recovery of tourism.

    Economic Recovery Status

    As measured by real gross domestic product (GDP), Hawai‘i’s economy rebounded to exceed pre-pandemic (first three quarters of 2019) levels by 1.5 percent during the first three quarters of 2024. Hawai‘i’s overall economy was fully recovered to pre-pandemic levels by the third quarter of 2023. By comparison, the U.S. economy has been fully recovered since the first quarter of 2021. Hawaiʻi was the second-slowest state in terms of economic recovery from the 2019 COVID recession. The U.S. economy was 12.6 percent higher than the 2019 level for the same indicator during the same period.

    While tourism-related sectors (Accommodation, Transportation, Retail Trade, Recreation, and Food Services) have only recovered to 94.5 percent of pre-pandemic levels as of the third quarter of 2024, non-tourism sectors have shown firm growth. Compared to real GDP in the last quarter of 2019, the Information sector has grown by 35.1 percent; the Professional, Scientific, and Technical Services sector by 25.0 percent; the Agricultural sector by 14.9 percent, and the Health Care and Social Assistance sector by 12.9 percent. The Wholesale Trade, Utilities, Accommodation and Food Services, and Other Services sectors are still below real GDP levels for the first three quarters of 2019.

    Compared to 2019, statewide non-agriculture annual average payroll jobs were still short by 20,900 jobs in 2024. However, Construction annual average payroll jobs were above 2019 levels by 4,000 jobs, Health Care and Social Assistance by 2,900, and Private Educational Services by 700. Job counts in all other sectors were still lower than the levels in 2019. Retail Trade lost the most jobs at 6,900, followed by Financial Activities at 3,200, and Accommodations at 3,000.

    During 2024, total visitor arrivals recovered 93.3 percent from the levels of 2019. Visitors from the U.S. increased by 6.7 percent, while international visitor recovery was 64.9 percent. The recovery rate of Japanese visitors was 45.7 percent and for Canadian visitors, the recovery rate was 80.2 percent.

    Visitor arrivals to the island of Maui during 2024 were 76.6 percent of the level in 2019. Arrivals to O‘ahu were at 94.5 percent and arrivals to Hawai‘i Island were at 98.0 percent of the same period 2019 levels. Visitor arrivals to Kaua‘i were flat between the two periods.

    Construction Industry Continues Booming

     

    Statistics in the construction industry were great in 2024 and will have positive impacts on activities in 2025 and beyond. DBEDT estimates that construction activity in 2025 will be stronger than previously expected for several reasons:

    1. The value of all building permits approved in 2024 increased by 27.1 percent from 2023 and most of these projects will be under construction in 2025.
    2. The number of residential housing units authorized in 2024 increased by 78.1 percent as compared with 2023, and it was the highest in the past 17 years.
    3. Construction completed as measured by the state contracting tax base increased 20.3 percent during the first 10 months of 2024 from the same period in 2023. DBEDT estimated that total construction value in 2024 could be over $14 billion.
    4. Based on preliminary estimates, construction industry payroll jobs increased 9.2 percent in 2024 as compared with 2023.
    5. A significant number of government construction projects are either ongoing or in the pipeline to be started.
    6. More than 1,000 hotel units are either under construction or will start construction, with plans to open in 2025 and 2026.

     

     

    Home Sales and Prices Continue Increasing

     

    After declining 26 percent in 2023, Hawai‘i home sales as recorded at the Bureau of Conveyances increased 15.1 percent during 2024. Sales of single-family homes increased 14.3 percent and sales of condominium homes increased 15.9 percent. The average sale price of single-family homes was $1,093,445 during 2024, representing an 8.1 percent increase compared to 2023. The average sale price for condominium homes was $797,674, representing an increase of 5.7 percent from the year before.

     

     

    Tourism Industry Growth is Likely to Slow Down

     

    According to the airline schedules, total air seats to the state will decrease by 1.1 percent during the first 10 months of 2025. The decrease is mainly due to the decrease in flights from international locations, especially from Japan. The number of air seats on international flights is expected to decrease by 5.5 percent during the first 10 months of 2025 as compared with the same period in 2024. Air seats will decrease 5.5 percent from Japan, decrease 5.1 percent from Canada, and decline 3.2 percent from the Other Asia market, but will increase 1.7 percent from the Oceania market (Australia and New Zealand).

    The number of scheduled air seats from the continental U.S. is flat during the first 10 months of 2025, an increase of a mere of 0.1 percent. While air seats from the U.S. East will increase 2.7 percent, seats will decrease by 0.2 percent from the U.S. West market. Part of the decrease in the air seats from the U.S. West market is the result of flight consolidations between Alaska and Hawaiian Airlines after their merger.

     

     

    Labor Market Remains Stable

     

    In 2024, the unemployment rate decreased 0.1 percentage point from the previous year’s 3.0 percent, to reach 2.9 percent. According to the Bureau of Labor Statistics, Hawai‘i was among the 17 U.S. states without statistically significant unemployment rate changes from December 2023 to December 2024 (seasonally adjusted). Hawai‘i’s unemployment rate was the 10th lowest in the U.S. during 2024.

    In the fourth quarter of 2024, Hawai‘i’s non-agricultural wage and salary jobs averaged 645,800 jobs, an increase of 10,400 jobs or 1.6 percent from the same quarter of 2023.  In 2024, average non-agricultural wage and salary jobs increased 0.9 percent or 5,500 jobs from the previous year. The job increase in the fourth quarter of 2024 was due to job increases in both the private sector and the government sector. In that quarter, the private sector added about 8,600 non-agricultural jobs compared to the fourth quarter of 2023. The number of jobs increased the most in Construction, which added 3,400 jobs or 8.9%, followed by Health Care and Social Assistance, which added 2,100 jobs or 2.8 percent, Food Services and Drinking Places, which added 1,900 jobs or 2.9 percent, Professional and Business Services, which added 1,400 jobs or 2.0 percent, and Accommodations, which added 700 jobs or 1.8 percent in the quarter.

    The average number of weekly initial unemployment claims was 1,090 during 2024, lower than the weekly average experienced in 2019 at 1,200. All counties have seen decreased and stable unemployment claims, but the average weekly unemployment claims for Maui County numbered 204 during 2024, 42 percent higher than the 2019 level of 144.

    DBEDT expects that the labor market conditions will remain stable and that the unemployment rate will improve slightly in 2025.

    Consumer Inflation Remains High

    Honolulu consumer inflation, as measured by the Honolulu Consumer Price Index for Urban Consumers (CPI-U), was 4.4 percent in 2024, 1.4 percentage points higher than the state’s inflation rate in 2023. This measurement was 1.5 percentage points above the 2.9 percent U.S. inflation rate.

    In 2024, Honolulu consumer inflation was mainly driven up by Housing which increased 7.1 percent compared to 2023, and Food and Beverages (3.8 percent). Housing normally accounts for 50 percent of Honolulu consumer inflation.

    In January 2025, the Honolulu consumer inflation rate was at 4.1 percent, still higher than the U.S. consumer inflation at 3.0 percent. Honolulu consumer inflation in January 2025 was mainly in transportation (+6.8 percent), housing (+4.4 percent), and food and beverages (+4.4 percent).

    National and International Economic Conditions

    U.S. real GDP increased at an annual rate of 2.5 percent in the fourth quarter of 2024 compared to the fourth quarter a year ago, according to the latest estimate released by the U.S. Bureau of Economic Analysis. Real GDP increased 2.8 percent in 2024 from the 2023 annual level.

    Policy uncertainty with respect to the imposition of tariffs and potential trade wars have negatively impacted the U.S. and global outlook for growth and inflation.

    According to the most recent (February 2025) economic projections by the top 50 economic forecasting organizations published in Blue Chip Economic Indicators, U.S. economic growth is expected to be 2.2 percent in 2025 and 2.0 percent in 2026.

    In February 2025, compared to January 2025, the Blue Chip International Consensus Forecasts for economic growth have been revised downward for 2025 in Canada and for the European countries. It was revised upward (0.1 percentage point) for Japan. The projected Japanese exchange rate was maintained at around 148.1 yen per dollar in 2025.

    The Federal Reserve kept its fed funds rate (FFR) target unchanged at its January 28-29 FOMC meeting. The Federal Reserve cut its key interest rates twice last year, reducing the Federal Funds rate by 75 basis points to a range of 4.5 percent to 4.75 percent. The market expectations of the future number and magnitude of cuts by the Federal Reserve have been reduced in recent surveys. Inflation expectations have also been revised upward.

    Forecasting Results

     

    In the newly released report, DBEDT predicts that the economic growth rate for Hawai‘i, as measured by the year-over-year percentage change in real GDP, to slow down to 1.7 percent in 2025, reflecting policy uncertainty at the national and international levels. Economic growth is expected to reach 2.0 percent in 2026 and will show steady growth to around 1.8 percent in 2028.

     

    Visitor arrivals are projected to increase by 1.0 percent in 2025 and will grow at a stable pace of around 2 percent each year between 2026 and 2028. Full recovery in arrivals will not happen until 2028 when 10.4 million visitors will come to the state. Visitor spending is projected to be $21.3 billion in 2025 and is expected to increase to $23.7 billion by 2028.

     

    Non-agriculture payroll jobs are expected to grow by 1.2 percent in 2025, with growth of 1.1 percent, 1.0 percent and 0.9 percent in 2026, 2027, and 2028, respectively. A full recovery of non-agriculture payroll jobs is expected to occur in 2027, when the total will reach 658,800 jobs, surpassing the 2019 total of 658,600.

     

    The state unemployment rate is expected to be 2.9 percent in 2025 and will improve to 2.7 percent in 2026, and 2.6 percent in 2027 and 2028. Personal income is expected to grow at 4.9 percent in 2025, 4.8 percent in 2026, 4.6 percent in 2027 and 4.5 percent in 2028.

     

    As measured by the Honolulu Consumer Price Index for Urban Consumers, inflation is expected to be at 3.9 percent in 2025, which is higher than the projected U.S. consumer inflation rate of 2.7 percent for the same year. Hawai‘i consumer inflation is expected to decrease to 2.9 percent by 2028.

     

    Hawai‘i’s population is expected to increase by 0.2 percent each year for 2025 and 2026 and at 0.3 percent each year for 2027 and 2028.

     

     

    Statement of DBEDT Director James Kunane Tokioka

    While the domestic and international economic outlook has become more uncertain, we expect Hawai‘i’s economy to demonstrate resiliency. In addition to firm performance in the construction industry, we will continue to see growth in other industries including professional services and healthcare. We expect that the tourism industry will continue to recover in the next few years, even if at a slower pace than previously anticipated.

     

    With the income tax reform and the increase in the supply of affordable housing, we expect that living in our state will be more affordable and support our state’s workforce formation and retention.

     

    The full report is available at dbedt.hawaii.gov/economic/qser/.

     

    # # #

     

    Media Contacts:

    Dr. Eugene Tian

    Research and Economic Analysis Division

    Department of Business, Economic Development and Tourism
    Phone: 808-586-2470
    Email:
    [email protected]

     

    Laci Goshi

    Department of Business, Economic Development and Tourism

    Cell: 808-518-5480

    Email: [email protected]

    MIL OSI USA News –

    March 6, 2025
  • MIL-OSI Economics: Tech companies can play key roles in making rural healthcare safer

    Source: Microsoft

    Headline: Tech companies can play key roles in making rural healthcare safer

    A new report on how Microsoft is helping rural communities protect critical healthcare infrastructure

    Last year, Microsoft launched its Cybersecurity for Rural Hospitals Program an initiative designed to help protect access to healthcare for the 46 million people living in rural America. Funded through a philanthropic investment, the program now has more than 550 rural hospitals, nearly one-third of all US rural hospitals, participating to receive free cybersecurity assessments, cybersecurity training, Microsoft security product discounts, and AI solutions designed to promote hospital resiliency.  

    Today, we are releasing a new white paper sharing what we’ve learned in the last year, including insights on the current cybersecurity landscape for rural health and the role technology companies can play. Our goal with this program is to address both the immediate cyber risks facing these critical community resources as well as broader systemic challenges facing rural health.   

    Click here to read the Microsoft report 

    Rural hospitals are a cornerstone of healthcare in communities across the United States, providing critical services for roughly 14% of the U.S. population. The need to support rural hospitals is immense. These hospitals are often the only healthcare option for over 50 miles in the communities they serve. A cyberattack that disrupts care for weeks or months in these isolated settings can have a devastating impact and endanger human lives. When a rural hospital’s IT systems go down, patients often need to travel even longer distances for medical care. Long travel distances for healthcare are directly associated with higher mortality rates, particularly for time-sensitive conditions like heart attacks and strokes. 

    The rural health cybersecurity landscape

    According to an FBI report, the healthcare sector reported more ransomware attacks in 2023 than any of the other critical infrastructure areas in the study. Given the highly sensitive personal data involved, healthcare is a rich target for increasingly sophisticated cybercriminals and nation-state threat actors launching cyberattacks. According to a recent report based on a survey of 402 healthcare organizations, 67% experienced a ransomware attack in the past year, with the average admitted ransom payment amounting to $4.4 million.  

    And while larger hospitals can often pay ransoms to avoid patient care disruptions, ransomware attacks pose a particular threat to rural hospitals who operate with much smaller operational teams and financial margins. Rural hospitals are prime targets for these attacks due to their often-limited resources and legacy technology. For rural hospitals, a ransomware attack may represent a tipping point toward closure, impacting not just the hospital, but the communities they serve with potentially life-threatening consequences.  

    As we’ve worked with these hospitals in the last year, our goal has been to help create strong security not just through our products but to also help address specific practice needs and identify broader systemic issues. For example, early on, we found most rural hospitals hadn’t implemented basic cybersecurity best practices, such as email security and multi-factor authentication. By delivering a holistic solution that includes free assessment, curated learning pathways for employees, and non-profit pricing for Critical Access and Rural Emergency Hospitals, we can help these hospitals to be less vulnerable to common threats and ultimately, better serve their communities.  

    Supporting rural health resilience

    With the release of today’s white paper, we hope to increase awareness and understanding of these issues and drive more collaboration between technology companies, policymakers, and healthcare providers to enhance the cybersecurity resilience of rural hospitals.  

    In the coming months, Microsoft will continue to expand efforts to support rural hospitals, ensuring they have the tools and resources needed to mitigate cyber threats and enhance their overall resilience. Leveraging AI for greater efficiency—by streamlining and automating some hospital processes—is just one way we are looking to provide support.   

    By addressing both immediate cybersecurity risks and broader systemic challenges, we can help ensure that rural hospitals remain a vital part of the healthcare ecosystem, providing essential services to millions of Americans. 

    Tags: AI, cybersecurity, healthcare, Microsoft Cybersecurity Program, Rural America, Rural Hospitals

    MIL OSI Economics –

    March 6, 2025
  • MIL-OSI Asia-Pac: Prime Minister Shri Narendra Modi addresses the Post-Budget Webinar on the theme ‘Investing in People’

    Source: Government of India

    Prime Minister Shri Narendra Modi addresses the Post-Budget Webinar on the theme ‘Investing in People’

    The vision of Investment in People is based on 3 pillars: Education, Skill and Healthcare”; increasing investment in these sectors will contribute to actualizing the dream of Viksit Bharat: Prime Minister

    “Through day-care cancer centres and digital healthcare infrastructure, we want to take quality healthcare to the last mile”

    “Initiatives like ‘Heal in India’ are attracting medical tourists from around the world. Efforts are being made to establish India as a global tourism and wellness hub”

    Since 2014, the number of medical colleges has surged from 387 to 780; remarkable increase observed in undergraduate and postgraduate medical seats, with an increase of 130% and 135% respectively: Union Health Minister

    There is a need for creating a curriculum that is more vibrant, meaningful and fit to current challenges, optimum utilization of existing health infrastructure and emphasised the need to enhance the soft skills of the medical students: Shri Nadda

    Posted On: 05 MAR 2025 9:34PM by PIB Delhi

    Prime Minister of India, Shri Narendra Modi addressed the Post-Budget Webinar on employment via video conferencing, today. The theme of the webinarwas “Investing in People, Economy, and Innovation,”which was attended by 29 Ministries of the Government of India, 100 panelists and more than 25,000 participants to discuss 43 articles of the recent Union Budget 2025-26.

    Addressing the gathering, Prime Minister underlined that “the theme of the webinar, ‘Investing in People’, defines the roadmap of Viksit Bharat and the impact of this theme can be seen at a large level on the budget.” He underlined that “the budget has emerged to be the ‘blueprint of India’s future’ where investing in people, economy and innovation has been given equal priority to investment in infrastructure and industry.”

    Prime Minister emphasized that “capacity-building and talent-nurturing will prove to be the foundation stones of the country’s progress, therefore in the next stage of development, we need to increase investment in these sectors. For which, all the stakeholders need to come forward as it is not only necessary for the economic success of the country but also for the success of all organizations.”

    Prime Minister highlighted that “the vision of Investment in People is based on 3 pillars: Education, Skill and Healthcare” and urged all the stakeholders “to increase investment in these sectors” and contribute to the government’s vision for these sectors to actualize the dream of Viksit Bharat.

    Highlighting the government’s efforts and the budget’s provisions, the Prime Minister stated that “in the budget, 10,000 additional medical seats have been announced and the government is working with the target of adding 75,000 seats in medical education in the next 5 years.”

    Highlighting the developments in the healthcare landscape, the Prime Minister stated that “tele-medicine facility is being expanded to all the Primary Health Centres.ThroughDay Care Cancer Centres and digital healthcare infrastructure, we want to take quality healthcare to the last mile that will ensure significant transformation in people’s lives.”

    Highlighting the importance and potential of the tourism sector, the Prime Minister stated that initiatives like “Heal in India” are attracting medical tourists from around the world” and “efforts are being made in the direction of making India a global-level tourism and wellness hub.” He urged all the stakeholders in the healthcare sector “to grab this opportunity and invest to promote health tourism” and emphasized on “utilizing the potential of Yoga and wellness tourism.”

    The Prime Minister also called for a detailed discussion and an extended roadmap for increasing the scope of medical tourism and urged all the stakeholders to work in the direction of making the budget announcements a reality so that their benefits can be taken to the people.

    Addressing the gathering, Union Minister for Health & Family, Shri Jagat Prakash Nadda stated that “the biggest investment is the investment in people”. He underlined that the government is working with a “holistic approach” that focuses not only at the curative aspect but also on the preventive, palliative, and rehabilitative approach. He added that “we are also trying to include the AYUSH and other medical systems to ensure the availability and access to heathcare for the people.”

    Shri Nadda stated that “since the cancer treatment is a lengthy process with long cycle of chemotherapy, the government is focusing on engaging with Day Care Cancer Centres rather than big hospitals to ensure engagement of patients, post-chemotherapy sessions. The government will establish Day Care Cancer Centres (DCCCs) in all district hospitals over the next three years, with establishing 200 this year itself.”

    Underlining the importance of strengthening the medical health system, the UnionHealthMinister reiterated the budget announcements of additional medical seats. He also highlighted the government’s efforts to ensure the availability and accessibility of quality healthcare to the people through more than 1.75 lakh Ayushman Aarogya Mandirs and facility of voluntary screenings for individuals aged 30 years and above at Ayushman Arogya Mandirs for oral, breast and cervical cancers along with the screening for hypertension and diabetes.

    Shri Nadda highlighted the government’s efforts for facilitating self-assessment of healthcare facilities and ensure the adherence of all the Ayushman Aarogya Mandirs with the National Quality Assurance Standards. He also added that “since 2014, the number of medical colleges has surged from 387 to 780 today, He emphasized the remarkable increase in both undergraduate and postgraduate medical seats, with an increase of 130% and 135% respectively.”

    Shri Nadda also underlined the key challenges identified and suggestions made during the webinar, including faculty development, periodic assessment of faculty gaps and timely recruitment after assessment to avoid any hindrances before running education and ensure smooth functioning in medical colleges. He also supported the suggestions like faculty pooling among medical institutes, hiring retired teachers as visiting faculties for making the unviable institutions viable; incorporation of competency-based medical education, early clinical exposure for students, and enhanced communication skills for both students and faculty.

    Additionally, he also advocated for including latest developments in technology, Artificial Intelligence, tele-medicine, digital healthcare in the revised curriculum of medical education. In his concluding remarks, he urged “for creating a curriculum that is more vibrant, meaningful and fit to current challenges” and “optimum utilization of existing infrastructure and medical faculty. He also emphasised the need to add soft skills to increase the empathy, ethics and communication skills of the medical students.”

    Shri Nadda highlighted the developments made in medical infrastructure for ensuring cancer care in the country like the establishment ofNational Cancer Institute (NCI) of AIIMS, Jhajjar, upgradation of Chittaranjan National Cancer Institute (CNCI), Kolkata, establishment of Oncology departments in all 22 AIIMS. Citing a recent LANCET study, he underlined that “timely cancer treatment initiation has improved significantly because of the Ayushman Bharat Jan Aarogya Yojna. Patients enrolled under AB-PMJAY saw 90% rise in access to cancer treatment within 30 days.”

    In his concluding remarks, the Union Health Minister stated that “the Government will continue its efforts through the holistic approach to ensure healthcare for allwhile working in the direction of strengthening the base of the medical educationpyramid through ensuring the training and recruitment of nursing, paramedics and assistive staff.”

    In his address during the inaugural session of the Webinar, Dr. V. K. Paul, Member (Health), NITI Aayog, focused on strengthening key aspects of the health sector. Highlighting significant advancements in India’s healthcare and medical education sectors, he stated that “the number of medical colleges in India has surged by an impressive 102% over the past decade, increasing from 387 to 780, resulting in a greater number of government medical colleges than private institutions, thereby enhancing affordability for aspiring medical students”. Dr. Paul emphasized the remarkable increase in both undergraduate and postgraduate medical seats, with undergraduate seats.He also discussed the key initiatives that include a special scheme aimed at upgrading district and referral hospitals into medical colleges; the introduction of the District Residence Program links public healthcare with medical education, allowing postgraduate residents to gain real-life experience in district hospitals.

    Addressing the rising burden of cancer, Dr. Paul underscored the urgent need for early detection, with a nationwide screening initiative reaching 26 crore people for oral cancer, 18crorefor breast cancer, and 9 crore for cervical cancer.He outlined the strategic roadmap for rolling out DCCCs nationwide, which includes the target of establishing one Day Care Cancer Centre in every district.Hereiterated the government’s commitment towards establishing cancer institutes and tertiary cancer care systems while ensuring financial coverage for cancer care through Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) that offers multiple care packages, while affordable medications through Jan AushadhiKendras. He concluded his remarks with a vision for a healthcare system that meets the standards of developed nations by 2047, describing the budget announcements as “aspirational and game-changing.”

    Ms Punya Salila Srivastava, Secretary of the Ministry of Health & Family Welfare, underscored the importance of collaboration between the central and state governments. She pointed out that the immediate priority is to identify high-burden districts for the first phase of implementation. She noted that India sees approximately 50% of cancer patients seeking treatment in tertiary hospitals, often leading to overcrowding and delays. The government aims to significantly reduce this burden by enabling district-level chemotherapy and immunotherapy services. She also emphasised the need for timely infrastructure development and the establishment of strong referral pathways linking DCCCs to State Cancer Institutes and tertiary hospitals.

     

    The Secretary also addressed the importance of workforce capacity-building. While oncologists are essential for specialised care, training general physicians, nurses, and pharmacists to manage chemotherapy administration and supportive care at DCCCs will be a game-changer. She called for increased partnerships with medical colleges, cancer research institutes, and nursing training centres to create a steady pipeline of skilled healthcare workers for these centres.

    A breakout session on strengthening cancer care in the country, was also organized during the webinar, focusing on expanding Day Care Cancer Centres (DCCCs). The session highlighted the government’s commitment to making cancer treatment more accessible and decentralised, in line with the Union Budget 2025-26 announcement of establishing 200 new DCCCs in district hospitals.Several experts shared insights on different aspects of the initiative that included: the need for structured training programs to equip medical professionals with the skills required to deliver quality treatment at DCCCs; importance of standardising chemotherapy protocols across all centres to maintain uniformity in treatment; challenges of drug procurement and the need for efficient supply chain management, particularly for life-saving oncology drugs that are often expensive and require specialised handling. Tamil Nadu and Odisha officials presented their successful models of decentralised cancer care, offering practical solutions for other states. These models demonstrated how strategic investments in district-level cancer care have resulted in earlier diagnosis, better treatment outcomes, and reduced patient migration to metropolitan hospitals.

    The session concluded with a call to action for all stakeholders. State governments were urged to fast-track the establishment of DCCCs by allocating necessary resources and ensuring trained personnel are available. Healthcare institutions were encouraged to support research, training, and service delivery. The private sector was invited to contribute through funding and infrastructure support. At the same time, civil society organisations were encouraged to promote awareness, early detection, and patient support programs.

    The Post-Budget Webinar on Budget Announcement also included a breakout session on“Expansion of Medical Education”. The panelists provided their insights and suggestions for the implementation of this ambitious initiative of expanding medical education in the countrywhich aligns with the broader objective of enhancing the accessibility, quality and sustainability of medical education in the country.

    The webinar was attended by officers from Ministry of Health & Family Welfare along withrepresentatives from NMC, ICMR, State Health Ministries, renowned doctors, medical professionals and faculty from renowned medical institutions.

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    MIL OSI Asia Pacific News –

    March 6, 2025
  • MIL-OSI Asia-Pac: 12th Regional 3R and Circular Economy Forum in Asia and the Pacific Concludes with the unanimous adoption of Jaipur Declaration by member countries

    Source: Government of India (2)

    12th Regional 3R and Circular Economy Forum in Asia and the Pacific Concludes with the unanimous adoption of Jaipur Declaration by member countries

    India’s proposal to float a multi stakeholder global alliance Cities Coalition for Circularity ( C-3) as a collaborative platform for knowledge sharing.

    The Forum saw the physical participation of 24 Asia Pacific member countries and nearly 200 international delegates

    Posted On: 05 MAR 2025 7:55PM by PIB Delhi

    The 12th Regional 3R and Circular Economy Forum in Asia and the Pacific concluded today with the unanimous adoption of the ‘Jaipur Declaration’ by the member countries.

    A guidance document has been prepared to suggest indicative strategies to countries as per national policies, circumstances and capabilities.

    As part of the Jaipur declaration, a collaborative knowledge platform as a global alliance C-3 ( Cities Coalition for Circularity ) has also been agreed upon.

    Jaipur Declaration speaks about different waste streams and circular economy goals for each of them. It speaks about the resource efficiency and sustainable material consumption. The declaration also covers informal sectors, gender issue and labour issues.

    It also provides for means of implementation, partnerships, technology transfer, funding mechanism and research and development.

    In his closing remarks, Union Minister Shri Manohar Lal said that Jaipur Declaration’ that has been adopted today is a testament to this shared commitment. I am glad this decadal declaration will be associated with the name of ‘Jaipur’ and even though it is non-binding, it will guide our country and all member nations of the Asia Pacific towards a circular transition.

    He also said that  based on our principle of “One Earth, One Family, One Future”, India will take the lead in formation of the Cities Coalition for Circularity (C-3) and  invited all UN member countries to join this coalition.

    Minister of State, Ministry of Housing and Urban Affairs , Shri Tokhan Sahu said that  the 12th Regional 3R and Circular Economy Forum for Asia and the Pacific has been a historic moment.

    He added “Over the past days, we have engaged in crucial discussions and deliberations on environmental conservation, sustainable resource utilization, and waste management to build a better future.”

    He also said that in today’s era, the concept of 3R (Reduce, Reuse, Recycle) and the circular economy is not just an option but a necessity.

    Prof. Amit Kapoor, Chair, Institute for Competitiveness, University of Stanford, delivered a special address on implementing circularity of solid and liquid waste for the largest human congregation at Maha Kumbh in Prayagraj, India. He shared key preliminary findings of an in-depth study that explores sustainable waste management solutions for the event, focusing on innovative approaches, scalability, and best practices to ensure environmental sustainability while managing millions of pilgrims.

    Click here for findings

    About the event

    The 12th Regional 3R and Circular Economy Forum in Asia and the Pacific was organized from 3rd to 5thMarch 2025 at Rajasthan International Centre, Jaipur.The theme of the Forum is  “Realizing Circular Societies Towards Achieving SDGs and Carbon Neutrality in Asia-Pacific.

    Participation in the event

    The 12th Regional 3R and Circular Economy Forum in Asia and the Pacific witnessed high-level participation, with the Hon’ble Union Minister of Housing and Urban Affairs Shri Manohar Lal inaugurating the event alongside ministers from Rajasthan, Madhya Pradesh, Uttarakhand, and Haryana.

    The forum saw the physical participation of 24 Asia-Pacific member countries, with ministers from Japan, Solomon Islands, Tuvalu, and Maldives attending in person. Nearly 200 international delegates, including government officials, experts, and private sector representatives, joined the discussions. From India, 800 delegates from 33 States & UTs, 15-line ministries, private sector, and technical institutions took part. The event had representation from 75 cities (9 international and 66 Indian cities).

    The forum featured 120 speakers contributing to 29 plenary sessions, 10 thematic sessions, 6 country breakout sessions, and 7 side events. To ensure broader participation, a virtual platform was also created for stakeholders across India and internationally.

    On the Inaugural day the 12th Regional 3R and Circular Economy Forum in Asia and the Pacific featured key announcements and initiatives aligned with India’s commitment to sustainability and circular economy principles.

    The Hon’ble Prime Minister’s message, presented during the inaugural session, emphasized India’s Pro Planet People (P-3) approach. To advance this vision, the Cities Coalition for Circularity (C-3) was proposed as an Indian-led multi-stakeholder, multi-nation alliance to facilitate knowledge sharing, city-to-city collaboration, and private-sector partnerships through a digital platform.

    A major milestone was the rollout of CITIIS 2.0, a Union Cabinet-approved program under which ₹1,800 crores worth of agreements were signed for integrated waste management and climate action in 18 cities across 14 states.

    The forum also marked the inauguration of the ‘India Pavilion’ and the ‘3R Trade and Technology Exhibition’, showcasing India’s achievements in the 3R and circular economy space. The exhibition provided a platform for over 40 Indian and Japanese businesses and startups to present innovative solutions.

    Engaging sessions such as the ‘Mayors’ Dialogue’ and ‘Case Clinic’ fostered deeper collaboration, while NGOs and self-help groups showcased waste-to-wealth initiatives, promoting sustainability-driven entrepreneurship and community engagement.

    On the second day of the 12th Regional 3R and Circular Economy Forum in Asia and the Pacific witnessed a significant announcement with India declaring its candidacy to host the World Circular Economy Forum (WCEF) 2026, following São Paulo, Brazil, in 2025. The announcement was made during a special session attended by Hon’ble Union Minister for Environment, Forest and Climate Change, Shri Bhupender Yadav, and the Hon’ble Minister from Andhra Pradesh. The forum also hosted plenary sessions, country breakout sessions, and side events, including discussions on India’s pathways to a circular economy, highlighting efforts in waste management and sustainability.

    Key outcomes included the launch of several initiatives such as the SBM Waste to Wealth PMS Portal, IFC Document Reference Guide, and India’s Circular Sutra, a compendium of 126 best practices compiled by the National Institute of Urban Affairs (NIUA). Additionally, a study on best practices in solid waste management in million-plus cities, prepared by CEEW, was released. A crucial MoU was signed between CSIR and MoHUA to advance scientific research and innovation in circular economy solutions. Delegates also participated in technical field visits to solid and liquid waste management facilities and key heritage sites in Jaipur, gaining firsthand insights into sustainable urban practices.

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    MIL OSI Asia Pacific News –

    March 6, 2025
  • MIL-OSI Asia-Pac: Union Minister for Environment, Forest and Climate Change Sh. Bhupender Yadav addresses Inaugural Session at World Sustainable Development Summit, 2025

    Source: Government of India

    Union Minister for Environment, Forest and Climate Change Sh. Bhupender Yadav addresses Inaugural Session at World Sustainable Development Summit, 2025

    The Global South is driving the climate agenda, and the world now looks to India as a leader, says Union Minister Sh. Bhupender Yadav

    Posted On: 05 MAR 2025 7:22PM by PIB Delhi

    “The Global South is driving the climate agenda, and the world now looks to India as a leader. In 2020 alone, India slashed its GHG emissions by 7.93%—a testament to its commitment to climate action,” said Union Minister for Environment, Forest and Climate Change, Sh. Bhupender Yadav in his inaugural address today at the World Sustainable Development Summit 2025. The summit was organized by The Energy and Resources Institute (TERI) with the theme “Partnerships for Accelerating Sustainable Development and Climate Solutions.” Prime Minister of Guyana, HE Brigadier Mark Phillip and HE Ms. Marina Silva, Minister of Environment and Climate Change, Brazil were present on this occasion.

    Speaking on the occasion, Union Minister Sh. Yadav underscored the critical role of the Global South in the fight against climate change, calling for increased collaboration, ambition, and action at the international level. He reaffirmed India’s commitment to global sustainability under the guidance of Prime Minister Shri Narendra Modi, who has spearheaded transformative global initiatives, including the International Solar Alliance (ISA), the Coalition for Disaster Resilient Infrastructure (CDRI), and Mission Lifestyle for Environment (LiFE).

    Union Minister reiterated the need to confront the issue of speciesism, which, like racism, prioritizes human interests over the well-being of other species and ecosystems. He emphasized that true sustainability can only be achieved when all forms of life are considered equally important and when environmental policies account for the protection and restoration of wildlife and biodiversity.

    Sh. Yadav observed India’s role as a global climate leader, committed to ensuring that climate action remains inclusive, ambitious, and collaborative. He emphasized that the Global South, including India, is essential in shaping climate discourse, as it faces the brunt of climate change impacts while also offering solutions rooted in sustainable development practices. He called on developed countries to honour their financial and technological commitments, especially in fulfilling their obligations under the Paris Agreement. He also underscored the need for enhanced international cooperation in strengthening Nationally Determined Contributions (NDCs), ensuring they address both the challenges and opportunities of climate action.

    Union Minister Sh. Yadav addressed the pressing need for increased climate adaptation finance. He referenced the UNEP Adaptation Gap Report, which highlights the urgent need to scale up adaptation efforts to cope with rising climate impacts. He called for more robust financial support for adaptation, ensuring that the most vulnerable regions are able to implement solutions that build resilience and safeguard livelihoods.

    Union Minister Sh. Bhupender Yadav outlined India’s long-term vision to become a Viksit Bharat by 2047, with a target of achieving net-zero emissions by 2070. He highlighted India’s progress, including the 36% reduction in emission intensity of GDP between 2005 and 2020 compared to the 45% target for 2030, and the Union Budget of 2025’s emphasis on energy security, expanding clean energy capacity, and fostering domestic manufacturing of green technologies. He emphasized that the fight against climate change cannot be fragmented. He emphasized on the importance of integrating climate action with the broader Sustainable Development Goals (SDGs) and called for strong global partnerships to address interconnected challenges such as poverty, inequality, and environmental degradation. The Minister called for reforms in global governance, urging the international community to place equity and justice at the heart of climate negotiations.

    Union Minister Sh. Yadav also praised the leadership of TERI in uniting the Global South on climate action and reiterated the need for multi-sectoral partnerships to accelerate progress toward a sustainable, low-carbon future.

    The summit was attended by Sh. Nitin Desai, Chairman, TERI, Dr Vibha Dhawan, Director General, TERI, subject experts and diginitaries.

    ***

    Gaurav Sharma

    (Release ID: 2108582) Visitor Counter : 100

    MIL OSI Asia Pacific News –

    March 6, 2025
  • MIL-OSI Asia-Pac: English rendering of PM’s address at post-budget webinar on boosting job creation via video conferencing

    Source: Government of India

    Posted On: 05 MAR 2025 3:16PM by PIB Delhi

    Namaskar! 

    Welcome and greetings to all of you in this important budget webinar. Investing in People, Economy and Innovation – This is a theme that defines the roadmap of developed India. You can see its impact on a very large scale in this year’s budget. Therefore, this budget has emerged as a blueprint for India’s future. We have given as much priority to infrastructure and industries in investment as we have given to People, Economy and Innovation. You all know that capacity building and talent nurturing work as the foundation stone for the country’s progress. Therefore, now in the next phase of development, we have to invest more in these areas. For this, all the stakeholders will have to come forward. Because, this is necessary for the economic success of the country. And at the same time, it is also the basis for the success of every organization.

    Friends, 

    The vision of Investment in people is standing on three pillars – education, skill and healthcare! Today you are seeing how India’s education system is going through a huge transformation after several decades. Big steps like the National Education Policy, expansion of IITs, integration of technology in the education system, use of the full potential of AI, digitization of textbooks, work of providing learning materials in 22 Indian languages, many such efforts are going on in mission mode. Due to these, today India’s education system is matching the needs and parameters of the 21st century world. 

    Friends, 

    The government has provided skill training to more than 3 crore youth since 2014. We have announced plans to upgrade 1,000 ITI institutes and create 5 centres of excellence. Our aim is that the training of the youth should be such that they can meet the needs of our industry. In this, we are taking help from global experts and ensuring that our youth can compete at the world level. Our industry and academia have the biggest role in all these efforts. Industry and educational institutes should understand each other’s needs and fulfill them. The youth should get a chance to keep up with the rapidly changing world, they should get exposure, they should get a platform for practical learning. For this, all stakeholders will have to come together. We have started  the PM-internship scheme to provide new opportunities and practical skills to the youth. We have to ensure that the maximum number of industries participate in this scheme at every scale.

    Friends, 

    We have announced 10 thousand additional medical seats in this budget. We are keeping the target of adding 75 thousand seats in the medical line in the next 5 years. Tele-medicine facilities are being expanded in all Primary Health Centres and in all these areas. Through day-care cancer centres and digital healthcare infrastructure, we want to take quality healthcare to the last mile. You can imagine how big a change this will bring in people’s lives. This will also create many new employment opportunities for the youth. You have to work equally fast to bring these on the ground. Only then will we be able to make the benefits of the budget announcements reach more and more people.

    Friends, 

    In the last 10 years we have also looked at investment in the economy with a futuristic approach. As you know, India’s urban population is estimated to reach 90 crores by 2047. Such a large population requires planned urbanization. For this, we have taken the initiative to create an Urban Challenge Fund of Rs 1 lakh crore. This will focus on governance, infrastructure and financial sustainability, and will also increase private investment. Our cities will be known for sustainable urban mobility, digital integration and Climate Resilience Plan. Our private sector, especially real estate and industry, should focus on planned urbanization and take it forward. Everyone has to work together to take forward campaigns like Amrit 2.0 and Jal Jeevan Mission.

    Friends, 

    Today, when we are talking about investment in the economy, we need to pay special attention to the possibilities of tourism. The tourism sector is expected to contribute up to 10% to our GDP. This sector has the potential to provide employment to crores of youth. Therefore, many decisions have been taken in this budget to promote domestic and international tourism. 50 destinations across the country will be developed with a focus on tourism. Giving infrastructure status to hotels in these destinations will increase the ease of tourism and will also boost local employment. The scope of the Mudra scheme for home-stays has also been expanded. Tourists from all over the world are being attracted through the campaigns ‘Heal in India’ and ‘Land of the Buddha’. Efforts are being made to make India a global level tourism and wellness hub.

    Friends, 

    When we talk about tourism, apart from the hotel industry and transport sector, there are new opportunities for other sectors in tourism as well. Therefore, I would say that our health sector stakeholders should invest in promoting health tourism, grab this opportunity. We should also use the full potential of yoga and wellness tourism. We also have a lot of scope in education tourism. I would like that there should be detailed discussions in this direction and we should move forward in this direction with a strong roadmap.

    Friends, 

    The country’s future is determined by the investment being made in innovation. Artificial Intelligence can give growth of several lakh crores of rupees to the Indian economy. Therefore, we have to move fast in this direction. In this budget, 500 crores have been allocated for AI-driven education and research. India will also establish the National Large Language Model to develop the capabilities of AI. In this direction, our private sector also needs to be one step ahead of the world. The world is waiting for a reliable, safe and democratic country that can provide economical solutions in AI. The more you will invest in this sector now, the more advantage you will get in the future.

    Friends, 

    Now India is the third largest startup ecosystem in the world. The government has taken several steps in this budget to promote startups. A corpus fund of Rs 1 lakh crore has been passed to promote research and innovation. This will increase investment in emerging sectors along with the Deep Tech Fund of funds. A provision of 10 thousand research fellowships has been made in IIT and IISc. This will promote research and provide opportunities to talented youth. Innovation will gain momentum through the National Geo-spatial Mission and National Research Foundation. We will have to work together at every level to take India to new heights in the field of research and innovation.

    Friends,

    Gyan Bharatam Mission, and I hope you all come forward in this word, the announcement of preserving the rich manuscript heritage of India through Gyan Bharatam Mission is very important. More than one crore manuscripts will be converted into digital form through this mission. After which a national digital repository will be created so that scholars and researchers from all over the world can know about India’s historical and traditional knowledge and wisdom. The government is setting up a National Gene Bank to preserve India’s plant genetic resources. The aim of this initiative of ours is to ensure genetic resources and food security for the coming generations. We have to expand the scope of such efforts. Our different institutes and sectors should become partners in these efforts.

    Friends,

    In February itself, we all have the great observations of the IMF about the Indian economy. According to this report, between 2015 and 2025… between 2015 and 2025, in these 10 years, the Indian economy has registered a growth of sixty six percent, i.e., 66 percent. India has now become a 3.8 trillion-dollar economy. This growth is more than many big economies. That day is not far when India will become a 5 trillion-dollar economy. We have to move ahead in the right direction, by making the right investments, and expand our economy in this way. And implementation of budget announcements also plays a big role in this, all of you have an important role. 

    My best wishes to all of you. And I am confident that by announcing the budget for the last few years, we have broken the tradition of, you do your part and we do ours. We sit with you before making the budget, even after making the budget, even after announcing it, we sit with you to implement the things that come up. Perhaps this model of public participation is very rare. And I am happy that this brainstorming program is gaining momentum every year, people are joining with enthusiasm, and everyone feels that the things we talk about before the budget are more important than the things that are useful in implementation after the budget. I am sure that this collective brainstorming will play a huge role in fulfilling our dreams, the dreams of 140 crore countrymen. My best wishes to all of you. 

    Thank you.

    DISCLAIMER: This is the approximate translation of PM’s speech. Original speech was delivered

    MIL OSI Asia Pacific News –

    March 6, 2025
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